The Federal Trade Commission is delaying until Dec. 31 enforcement of the Red Flags rule, which requires businesses that offer in-house financing, branded credit cards, or similar services to institute a Written Identity Theft Program.
While that includes thousands of jewelry stores, manufacturers who offer goods on consignment may also be impacted, says Jewelers Vigilance Committee president and CEO Cecilia Gardner.
“If you give memo only to people who you know very well and are fully identified, you may not need to have a separate program,” she adds.
The new enforcement date should give jewelers plenty of time to establish the required program. “The Red Flags Rule is the law, but it’s easy to comply with. There is much less to do than the Patriot Act. It is not a heavy lift and should only take a few hours.”
The delay was enacted May 28 so Congress can consider further legislation on the scope of the rule. The -Jewelers Vigilance Committee is offering a Red Flags Compliance Kit at jvclegal.org. For more information, visit the Federal Trade Commission’s website: ftc.gov/redflagsrule.