Recent Press Releases

Washington, D.C. —  Senator John Thune today reacted to an announcement by the Federal Trade Commission (FTC) that the agency would again delay implementation of the "Red Flags" rule that would require small businesses like doctors' and dentists' offices, veterinary clinics, and accounting offices to take the same costly steps as banks and financial institutions to guard against identity theft.

"Businesses should take necessary precautions to protect the private data of their customers, but small businesses should not fall under the same guidelines as financial institutions and larger creditors," said Thune. "The FTC's decision to wait for Congressional clarification on this issue is the correct one. I hope that our efforts to provide a legislative solution that protects consumers and businesses alike can be achieved soon."

In 2007, the FTC issued the regulations under the Fair and Accurate Credit Transition Act (FACT Act), which requires the establishment of guidelines for financial institutions and creditors to implement greater measures concerning identity theft. However, the FTC has again delayed enforcement of these regulations that was scheduled to take place June 1, 2010. Earlier this week, Senator Thune and Senator Mark Begich (D-AK) introduced a bipartisan bill (S. 3416) to permanently protect small businesses from overregulation in this regard due to the FTC's broad definition of creditor which would impact countless small businesses across the country. A similar measure (HR 3763) was passed by the House of Representatives 400-0 last year. The FTC decision will delay the implementation of the "Red Flags" rule through December 31, 2010.