Update: FTC Extends Red Flags Rule Enforcement to December

Update: FTC Extends
Red Flags
Rule Enforcement to December

The Federal Trade Commission has again extended the deadline for
enforcement of the Red Flags Rule, a section of the Fair and Accurate
Credit Transaction Act of 2003, until Dec. 31. Enforcement was to begin
June 1, 2010.

The rule is an anti-fraud regulation requiring creditors and
financial institutions with covered accounts to implement programs to
identify, detect and respond to the warning signs, or “red flags,” that
could indicate identity theft.

Veterinarians fall into the category of creditors, which is defined
as any entity that regularly extends or renews credit — or arranges for
others to do so — and includes all entities that regularly permit
deferred payments for goods or services.

The rule became effective on Jan. 1, 2008, but the FTC has since
issued several Enforcement Policies delaying enforcement of the rule.
Most recently, the FTC announced in October 2009 that at the request of
certain Members of Congress, it was delaying enforcement of the rule
until June 1, 2010, to allow Congress time to finalize legislation that
would limit the scope of business covered by the rule. Since then, the
FTC has received another request from Members of Congress for another
delay in enforcement of the rule beyond June 1.

Congress is currently considering legislation (S. 3416), introduced
late May, that would exempt veterinarians, physicians and dentists from
the Red Flag’s Rule. The U.S. House of Representatives passed a similar
bill (H.R. 3763) on Oct. 20, 2009.

Although enforcement of the rule has been delayed until Dec. 31, the
American Veterinary Medical Association points out that the rule is
technically in effect now and veterinarians are expected to comply. The
AVMA is providing resources for veterinarians at its [ندعوك للتسجيل في المنتدى أو التعريف بنفسك لمعاينة هذا الرابط]. Information
includes how the rule will specifically affect veterinarians, details on
how veterinary practices can become compliant and online training and
consultant resources.[/b]

As the AVMA sums it up, “The Red Flags Rule requires you to develop
and implement a written identity theft prevention program which is
updated as needed; train all employees to implement the program; and
oversee your vendors and service providers to ensure they also provide
sufficient precautions to prevent, detect and mitigate identity theft.”

The FTC also has a [ندعوك للتسجيل في المنتدى أو التعريف بنفسك لمعاينة هذا الرابط] that offers
resources to help entities determine if they are covered and, if they
are, how to comply with the rule. In addition, the website includes an
online compliance template that allows companies to design their own
Identity Theft Prevention Program, as well as articles directed to
specific businesses and industries, guidance materials and a Frequently
Asked Questions section.