U.S. Congress May Exclude Some Jewelry Companies from Red Flags Rule

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. The rule, to be enforced as of November 1, requires that many businesses establish an Identity Theft Prevention Program.

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 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.

If it does become law, the Jewelers Vigilance Committee (JVC) will assist qualifying companies prepare their applications for the exclusion. 

JVC offers a compliance kit to companies that do not qualify for the exclusion. It can be ordered online for $55 for JVC members and $105 to non-members.