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Frequently Asked Questions


Why PrivacyEdge?

"We go beyond the "Red Flags" Rule—we keep you compliant with all of your privacy requirements."

PrivacyEdge Red Flags Training

For example, in Pennsylvania under Chapter 31. State Board of Veterinary Medicine - § 31.21. Rules of Professional Conduct for Veterinarians - Principle 7. Veterinarian/Client Relationships.- (c), it reads...

Veterinarians and their staffs shall protect the personal privacy of clients, unless the veterinarians are required by law to reveal the confidences or it becomes necessary to reveal the confidences to protect the health and welfare of an individual, the animal or others whose health and welfare may be endangered.


Click on the links below to see PrivacyEdge's answers to these important, frequently asked questions.

  1. Why should I be worried about identity theft?
  2. What is the "Red Flags" Rule?
  3. What are the basic tenants of the "Red Flags" Rule?
  4. How is my practice affected by the "Red Flags" Rule?
  5. When does the "Red Flags" Rule take effect?
  6. How do I comply with the "Red Flags" Rule?
  7. What are the consequences of noncompliance with the "Red Flags" Rule?
  8. Will I need to drastically change the operation of my practice to comply with the "Red Flags" Rule?
  9. Are there any other laws that require my veterinary practice to keep private information secure?
PrivacyEdge wants to hear from you! We would like to hear from you!

Please contact us with any questions that you may have about the "Red Flags" Rule or other Privacy Regulations.



  1. Why should I be worried about identity theft?

    We should ALL be worried about identity theft. It's growing, and it's a very lucrative crime. Unlike stolen cash, stereos or drugs, identities can be sold over and over again. People whose identities are stolen spend countless hours and dollars trying to fix their credit rating and reestablishing their reputations. Often, irreparable damage is done to the victim's identity. Many people believe identity theft is only financial in nature, but this is not true. It actually can include any aspect of your identity, including your medical, driver's license, Social Security, professional, criminal and financial identities.

    As a respected member of the veterinary profession and a business owner, you have ethical and legal responsibilities to protect your clients' and employees' personal information as much as possible. You don't want it to happen to you, and you certainly don't want to be blamed for the theft of a client's identity.

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  2. What is the "Red Flags" Rule?

    The "Red Flags" Rule is basically a regulation issued by the Federal Trade Commission (FTC) under the Fair and Accurate Credit Transactions Act (FACTA), a federal law passed in 2003 to strengthen protection against identity theft.

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  3. What are the basic tenants of the "Red Flags" Rule?

    Simply put, the "Red Flags" Rule requires you to develop and implement a written identity theft prevention program which is updated as needed; train all employees to implement the program; and oversee your vendors and service providers to ensure they also provide sufficient precautions to prevent, detect and mitigate identity theft. The rule also identifies 26 "Red Flags" that are indicators of the risk of identity theft. Not all of the "Red Flags" will apply to your practice, and you may identify additional "Red Flags" as you evaluate your practice.

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  4. How is my practice affected by the "Red Flags" Rule?

    Any veterinary practice that receives payment after services are provided, even if it's collected in full after the animal is discharged from the hospital, is considered a "creditor" under the law. On the other hand, requiring payment before or at the time of service, or simply accepting credit cards as a form of payment at the time of service, does not make you a creditor under the rule. The "Red Flags" Rule establishes new protocols for creditors to take additional steps to prevent, detect and mitigate identity theft.

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  5. When does the "Red Flags" Rule take effect?

    The FTC had planned to enforce the rule on May 1, 2009, but has announced a delay in enforcement until August 1, 2009.

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  6. How do I comply with the "Red Flags" Rule?

    Compliance with the Rule means developing a written document that thoroughly details the measures your practice will take to protect the personal identifying information of its clients and staff members. As always, a written plan is worthless unless all of the staff members understand and implement the plan. All staff members must be certified to confirm they have been properly trained.

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  7. What are the consequences of noncompliance with the "Red Flags" Rule?

    If the FTC finds you in violation of the rule, you may be subject to fines.

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  8. Will I need to drastically change the operation of my practice to comply with the "Red Flags" Rule?

    No. You will need to devote some time and money to comply with this Rule similarly to what you may already be doing to comply with OSHA.

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  9. Are there any other laws that require my veterinary practice to keep private information secure?

    Yes. There are Federal statues like the Federal Trade Commission Act and the FACTA Disposal Rule. In addition there are State Laws requiring you to keep private information secure; for example, many states have enacted their own legislation to restrict the use and display of Social Security numbers. Also, contact your state board of veterinary medicine to determine if they require your practice to protect your clients private personal information.

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