Veterinarians

Identity Theft: FTC’s “Red Flags Rule” Summary
Updated July 30, 2009

DEADLINE FOR COMPLIANCE: November 1, 2009

On November 9, 2007, the Federal Trade Commission (FTC) issued a rule that may affect your veterinary practice. The “Red Flags” Rule, 16 C.F.R. § 681.2, requires “creditors” and “financial institutions” to develop written plans to prevent and detect identity theft. The rule is a section of the Fair and Accurate Credit Transaction Act (”FACT Act”) of 2003, a federal law which requires the establishment of guidelines for financial institutions and creditors regarding identity theft.

Full text of the “Red Flags” Rule

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Health care professionals, including veterinarians, fall into the category of “creditors” because they do not always receive payment in full from their clients at the time of treatment. On January 30, 2009, the AVMA Governmental Relations Division (GRD) sent a letter to the FTC requesting that veterinarians be excluded from the Rule. On March 19, 2009, the FTC responded to the AVMA, stating that veterinarians and other health care providers will be subject to the “Red Flags” Rule. However, the FTC indicated willingness to continue dialog to ensure that compliance with the Rule will not place undue burdens on the veterinary profession.

Read the FTC’s statement, “The ‘Red Flags’ Rule: What Health Care Providers Need to Know About Complying with New Requirements for Fighting Identity Theft”