Many retailers who offer "instant credit card" or business terms accounts were surprised to discover that they were considered "creditors" under the new FTC rule. Therefore, the Commission changed its enforcement start date from November 1, 2009 to June 1, 2010. Commissioners developed Red Flags to help customer service personnel increase awareness of frequent identity theft techniques and to help company owners detect internal identity theft threats.
Although companies affected by the rule do not need to submit their Red Flags procedures to the FTC, Commission personnel will demand copies of written policies during the course of identity theft investigations. The FTC has posted instructional brochures, videos, and training materials to its website to aid banks and retailers who have not yet completed their written plans.
About the Author
Joe Taylor Jr. is an internal business consultant for a Fortune 500 company, who writes about finance, culture, and design. He holds a Bachelor of Science in Communications from Ithaca College.