JVC reports Congress likely to modify Red Flags Rule

(NEW YORK) - Responding to the concerns of the small-business community, on October 22, 2009, the U.S. House of Representatives passed a bill that, among other things, allows some companies to apply for an exclusion from the Red Flags Rule.  That Rule requires that many businesses establish an Identity Theft Prevention Program.  The House bill has now been referred to the Senate for consideration.  If approved by the Senate, and signed by the President, the exclusions will become official.

According to the pending legislation, and of particular interest to the jewelry industry, a company applying for an exclusion will qualify if it:

• knows all its customers or clients individually, or
• has not experienced incidents of identity theft and identity theft is rare for businesses of that type.

The Jewelers Vigilance Committee (JVC) will monitor the progress of the bill.  If it does become law they will be available to assist qualifying companies prepare their applications for the exclusion.  For those companies that do not qualify for the exclusion, JVC’s Red Flags Rule Compliance Kit on CD sponsored by GE Money can be ordered on-line at their website, www.jvclegal.org.  Visit the website for information about the Red Flags Rule and details about who is covered, as the law currently reads.

JVC members’ price for the CD is $55; non-members’ price is $105. Both prices include shipping and handling. JVC members always receive deep discounts on JVC products and services.

Visit JVC’s website jvclegal.org for important legal compliance information and updates pertaining the jewelry industry.