FTC to Enforce Red Flags Rule November 1
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06.10.09, 10:36
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Retail
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Press Release: Effective November 1, 2009, the federal Red Flags Rule will require jewelry businesses that extend credit (to consumers or to other businesses) to implement a written identity theft prevention program. The goal of such a program is to prevent thieves from stealing identity information for fraudulent purposes and to detect and prevent efforts to steal identity data in order to perpetrate identity theft. The Federal Trade Commission (FTC) has set an enforcement date of November 1, 2009.
Effective immediately, jewelers can pre-order JVC’s Red Flags Rule Compliance Kit on CD, sponsored by GE Money. Created in the same format as JVC’s PATRIOT Act Compliance Kit, JVC’s Red Flags Rule Compliance Kit includes easy-to-use forms, templates and guidance on a CD for jewelers to develop their own Red Flags Rule Identity Theft Prevention Program. JVC’s Kit includes step-by-step templates covering a variety of topics, such as:
• who must establish a Red Flags program;
• what accounts are covered by the Red Flags program;
• how the Red Flags rule fit with other data security measures currently in place;
• administering the program and educating staff; and
• additional relevant areas of interest.
Under the law, companies that offer credit to their customers, either through in-house financing, branded credit card programs or any other credit arrangement must comply. This includes companies that sell using "memos.” Jewelry businesses that only accept credit cards for payment are not considered creditors and therefore do not have compliance obligations.
The rules require a business covered by the rule to establish a written program designed to detect “red flags” indicating an attempt to steal identity information and to put in place a program to prevent such thefts. This program must be integrated into the daily operations of the business and can be tailored to the risks the specific jeweler's credit program presents. Examples of red flags include alerts from a credit reporting company about suspicious identification documents or activity on the Internet that indicates an attempt to access identification information by an unauthorized third party. JVC’s expert legal compliance team is available to answer jewelers’ questions.
Said Cecilia Gardner, JVC’s president, (CEO) and general counsel: “The FTC’s new regulations require businesses that extend credit to institute a written Red Flags policy program to help identity and prevent ID theft through credit arrangements. Like JVC’s Green PATRIOT Act Compliance Kit, Green PACK, the industry standard for anti-money laundering program development, JVC’s Red Flags Rule Compliance Kit includes forms and templates on a CD that jewelers can customize to develop their Red Flags programs to comply with FTC requirements.
JVC can develop Red Flags programs for companies that do not wish to create their own. Visit JVC’s website – www.jvclegal.org – to pre-order JVC’s Red Flags Rule Compliance Kit, for more information about Red Flags requirements (including whether you must comply) and other important legal compliance information and updates pertaining to your jewelry business.”
Regina Leadem, vice president of sales for GE Money, said, “The GE Money team is proud to sponsor JVC’s Red Flags Rule Compliance Kit on CD and to continue to support JVC’s good work to educate the jewelry industry about legal compliance regulations pertaining to their businesses. GE Money encourages fine jewelers to support JVC through membership and to utilize the legal compliance products and services the association offers.”
Jewelers can pre-order JVC’s Red Flags Rule Compliance Kit on JVC’s website. The JVC member price is $55; the non-member price is $105. Both prices include shipping and handling. JVC members always receive deep discounts on JVC products and services.
Visit JVC’s website – www.jvclegal.org – for more information about Red Flags requirements and other important legal compliance information and updates pertaining to the jewelry industry.
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