Enforcement of the Red flags Rule is postponed to June 2010

The enforcement of the Red Flags Rule has been further delayed by the Federal Trade Commission until June 1, 2010. Earlier to this, the Commission had delayed the enforcement of the Rule until November 1, 2009.

As per the Rule, those jewelers covered under it are required to prepare their Identity Theft Prevention Program. The delay in the Rule enforcement will now allow jewellers more time to develop the Program. The Red Flags Program aims to help identify, detect and respond to the “red flags” of identity theft. Any jeweller who is a “creditor” with “covered accounts,” as those terms are defined by the Rule, is required to develop a programme by June 1, 2010.