FTC IDENTITY THEFT “RED FLAGS RULE” ENFORCEMENT STARTS 11/1/2009
On November 1, 2009, the long-awaited enforcement by the Federal Trade Commission (the “FTC”) of the identity theft regulations commonly known as the Red Flags Rule (hereinafter the “Rule”) will finally arrive. While certain federal agencies (e.g., banking and credit union regulators such as the OCC, Federal Reserve System, FDIC, OTS and NCUA) began enforcement of the Rule right away, the FTC postponed its enforcement to provide businesses with guidance and additional time to develop policies that comply with the Rule’s requirements. The FTC enforcement starts next week, therefore it is important for you to know that there are financial and other penalties for non-compliance. This article gives a quick overview to help you determine if your business is required to be in compliance with the Rule and reviews the penalties for non-compliance.
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