Red Flags Rule guide ADA program helps dentists meet May 1 deadline

The ADA is helping members comply with the Red Flags Rule by launching the ADA Sample Identity Theft Detection and Response Program and ADA Guide for Compliance with the New Red Flags Rule. These are the best sources available to help dentists meet the proposed May 1 Red Flags Rule deadline.

The Red Flags Rule requires financial institutions and “creditors”鈥攁 term the FTC defines very broadly鈥攖o develop a written plan to prevent and detect identity theft. Although the ADA has challenged the Federal Trade Commission on the applicability of the rule to dentists, the Association has also developed compliance materials for ADA members while continuing to urge the FTC to reconsider the issue.

Available to members from their state associations and on ADA.org, the Guide for Compliance with the New Red Flags Rule聽(in PDF format) details how dentists can identify and address red flags and most easily formalize and administer a red flags program. The ADA Sample Identity Theft Detection and Response Policy and Procedures document聽(in Microsoft Word format) can be put into service to meet the requirement under the rule to develop a written plan to prevent and detect identity theft.

“These materials will give our members an edge in complying with this rule should the FTC continue to insist that it applies to dentists,” said ADA President John S. Findley. “The ADA staff has the expertise to understand and convey what dentists need to know.”

“At the same time,” Dr. Findley continued, “the ADA is redoubling it efforts to halt the application of the Red Flags Rule to dental offices. The Association has already made progress with some members of Congress in this regard, and we sent out an e-mail alert asking all of our members to ask their representatives in Washington to contact the FTC on the red flags issue.”

Tamra Kempf, ADA chief legal counsel, said the ADA is working on a number of fronts to serve ADA member interests when it comes to the Red Flags Rule.

“We’re trying to make the FTC understand that it just does not make sense to apply the rule to dental practices,” said Ms. Kempf. “In the event the FTC continues to dig its heels in on the issue, we’ve developed a guide and sample plan for dental practices to use and we are answering the questions about the rule that we’re receiving from individual practices.”

Although there are no criminal penalties for failing to comply with the Red Flags Rule, dentists who are subject to the rule and are found to have violated it may be subject to civil monetary penalties of up to $2,500 per violation. The FTC says that at least initially the agency will rely on good faith implementation by dentists.

The ADA News will continue to provide updates on developments related to Red Flags Rule compliance and dentists.