Heads up on a new federal regulation that will impact dealerships
Dealerships gearing up for the spring and summer selling season should remember a new federal regulation that is going into effect this June. Starting June 1, dealerships will have to comply with the “Red Flags Rule,” a program geared at identifying and responding to identity theft.
The starting period of the new regulation has been delayed several times, but the Federal Trade Commission (FTC) has established June 1 as the date companies must be complaint.
Officials familiar with the regulations have told Powersports Business that while there is n one specific contract for dealers to prove they’re in compliance with the new regulation, they still must have documentation showing they are complying.
For more information, log on to the FTC’s Red Flags Web site, www.ftc.gov/redflagsrule, which offers resources to help entities determine if they are covered and, if they are, how to comply with the federal mandate. The Web site includes a compliance template that enables companies to design their own Identity Theft Prevention Program. Dealers also can call 877/FTC-HELP (877/382-4357).
