On Oct. 30, 2009, the Federal Trade Commission (FTC) announced that it would extend the moratorium on enforcement of the Red Flags Rule until June 1, 2010. Among other things, this rule requires each financial institution or creditor to develop and implement a written identity theft prevention program (Red Flag Program). According to the FTC’s Bureau of Consumer Protection, a dental office is considered a “creditor” and thus would be required, when this rule goes into effect, to have a Red Flag program. 

Complying with the Red Flags Rule will have little impact on identity theft, do nothing to improve the oral health care of the public, and cost dentists money and resources that should be expended elsewhere, especially in these economically distressed times.

However, there is a chance that pending legislation could allow a permanent exemption for dentists and other small health care providers from having to comply. The House of Representatives overwhelmingly passed H.R. 3763, a bill introduced by Reps. John Adler (D-N.J.-3), Mike Simpson (R-Idaho-2), and Paul Broun (R-Ga.-10) that exempts small businesses, including private practicing dentists, from having to comply with the Red Flags Rule. The AGD has issued several action alerts to members asking them to contact their elected representatives; the most recent action alert was sent to encourage members to contact their Senators to pass H.R. 3763.

Impact on General Dentists: Given that the FTC has announced that it supports this bill, the president is expected to sign it immediately after it passes the Senate. The enactment of a law that permanently exempts most dental practices from this regulatory burden is a success due in large part to all of the general dentists who responded to previous AGD action alerts and contacted their elected representatives. Thank you for your efforts!