The Federal Trade Commission’s new “Red Flag Rules,” which were set to take effect Tuesday, June 1, have again been delayed. The FTC today announced that enforcement of the rules will be delayed until Dec. 31, 2010, while Congress considers legislation that would affect the scope of entities covered by the Rule.
Essentially, the rules require all businesses that extend forms of credit (except credit cards) to devise a strategy for detecting and responding to potential circumstances of identity theft. The provisions of the plan should also be shared with the entire staff to ensure all employees are aware of its content.
Under the rules, veterinary practices that establish periodic payment plans with clients will be required to develop a written plan that recognizes and prevents identity theft. The AVMA has stated it will continue to pursue federal legislation to exempt various small businesses, including veterinary practices, from the rule.