Enforcement of ‘Red Flags’ Rule is extended

Following a request from Members of Congress, the Federal Trade Commission is further delaying enforcement of the “Red Flags” Rule through December 31, 2010, while Congress considers legislation that would affect the scope of entities covered by the Rule.

Cecilia Gardner, JVC’s president, CEO and general counsel said, “The Red Flags Rule is the law. The extension of the enforcement date only pertains to when the Federal Trade Commission can issue fines or institute enforcement proceedings. Jewelers should consider putting their Red Flags programs in place now.”

The Red Flags Rule aims at preventing any identity thefts in businesses. Those retail jewellers who offer credit to consumers or other businesses need to implement a written Identity Theft Prevention Program, which is intended to prevent thieves from stealing identity information for fraudulent purposes.