Resources

Red Flags Rule

Date:
10/30/2009

Source:
Kirk M. Reynolds

Link:

Description:
Effective November 1, 2009, the FTC will begin enforcing the Red Flags Rule, which requires any business or organization that regularly provides goods or services upfront and allows customers to pay later to develop written identity theft policies and procedures. While most businesses initially ignored this rule because it appeared to apply solely to financial institutions and creditors, subsequent guidance from the FTC indicates that many more businesses than originally thought are governed by the rule. While a bill currently before the Senate may exempt certain businesses from coverage under the rule, the scope of the bill and the timing for adoption are not certain as of this writing, meaning businesses should still plan to develop an identity theft policy now. A more detailed discussion of the Red Flags Rule is contained in the downloadable pdf below.

Download:
Red Flags Rule1.pdf