The Red Flags Rule…Does it Apply to Your Practice?

Dental Red Flag RulesThe American Dental Association continues to fight the inclusion of dental practices in the implementation of the so-called Red Flags Rule, anti-identity theft policies being established by the Federal Trade Commission. The ADA argues that FTC interpretation of the rules to include dentists’ offices as “creditors” that must comply with the rules will be overly burdensome for small practices.

Created through the Fair and Accurate Credit Act of 2003, the regulations require businesses that extend credit to consumers to develop a written policy that identifies warning signs and suspicious activities (i.e., red flags) of possible identity theft, and tactics to address and prevent it. Businesses that defer payment for goods or services must follow the Red Flags Rule.

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