I have been asking myself this very question... it's easy to erase a paper adress book, not so much if your business has a non-human, like a parrot, who remembered that !
Note that this law is a problem for digital storage too : it's not easy to erase data (especially one stored in cold transistor storage) without physically destroying the storage medium. (I guess the law might get around this by having you "pinky promise" that you will not retrieve the "erased" data later... or else face much more dire legal consequences ??)
I guess this will just need to be tested in courts ?