Treating reclaimed wood from pallets?

Hi, I've come across a few different DIY projects lately that all involve reclaiming wood from shipping pallets. A couple of them mentioned that the wood needs to be treated first before it's safe to use as furniture, becuase it's prone to termites/bugs/other stuff you wouldn't want in your house. My questions:

1) Is this true? and

2) How would you go about doing this?

 

Thanks in advance! =)