FTC Red Flag Rules Due To Kick In
Jul 21st, 2008 | By Dawn Rivers Baker | Category: RegulationsThe Federal Trade Commission (FTC) has issued a business alert to remind relevant firms that its Red Flag Rules will go into effect on November 1, 2008, and compliance is required as of that date. The relevant firms in question are financial institutions, which will not include any microbusinesses, and “creditors” — any firm that is involved in the decision to issue consumer or small business credit, a category overflowing with microbusinesses. Compliance requires impacted firms to come up with an Identity Theft Prevention Plan to identify ‘red flags’ that may signal trouble and take steps to prevent or mitigate the identity theft. The FTC has promised small business compliance guidance but, so far, it has not materialized. Compliance questions can be directed to RedFlags@ftc.gov. The FTC published a list of sample ‘red flags’ in the Federal Register, which the Microbusiness News Briefs has made available here.
