The Federal Trade Commission (FTC) issued “Red Flag” regulations that require certain “creditors” to create a written identity theft policy. Because the “creditors” subject to the regulations are defined broadly to include businesses that allow customers to pay in installment plans or defer payment, some broadcasters who sell advertising to small businesses may need to be in compliance with these rules. The deadline for creating a compliance plan is August 1, 2009.

Stations should evaluate whether they fall within the scope of these rules in consultation with legal counsel and develop a compliance plan if necessary. For more information and a step-by-step interactive program that helps low-risk businesses create an identity theft policy, visit the FTC’s Web site at: http://www.ftc.gov/redflagsrule.