Is YOUR business ready for the June 9th FTC Safeguards Rule Deadline? It's not just for banks.

By Bob Michie, MetroMSP
Is YOUR business ready for the June 9th FTC Safeguards Rule Deadline? It's not just for banks. The June 9th Federal Trade Commission (FTC) Safeguards Rule deadline is on the horizon. While it might appear to primarily concern financial institutions, the regulation's scope is far more extensive, covering a wide array of businesses. Even if your sector isn't explicitly listed, understanding whether your enterprise falls under the Rule's jurisdiction is crucial. Here's how to determine if your business needs to comply with the FTC Safeguards Rule.

Understand the Rule:
The FTC Safeguards Rule requires businesses to put into place a comprehensive information security program to protect customer data. While the rule is primarily aimed at financial institutions, it also applies to all businesses significantly involved in financial activities. This includes those indirectly participating in financial transactions, such as service providers and technology companies.

Recognize the implications:
The Rule isn't industry-specific. If your business meets any of the criteria, you must comply - even if your industry isn't explicitly mentioned. Non-compliance could lead to hefty financial and reputational penalties.

Evaluate your business activities:
Assess your business activities to ascertain if you fall under the FTC Safeguards Rule. If you deal with consumer financial information, facilitate financial transactions, or provide financial services, you likely need to comply.

Engage with legal counsel:
Given the complexity of the FTC Safeguards Rule, it's advisable to consult with a legal expert. They can help determine your compliance status and guide you through implementing the necessary procedures and safeguards.

Industries that likely need to comply:

• Healthcare providers
• Retail businesses offering financing options
• Online businesses handling financial transactions
• Residential contractors offering financing
• Pool and spa companies recommending consumer financing

Industries that MUST comply:

• Car dealerships with leasing options
• Banks and credit unions
• Payday lenders
• Mortgage brokers
• Credit card companies
• CPAs/Tax preparation firms
• Insurance agencies
• Non-banking financial institutions, such as travel agencies operating a travel card, check cashing businesses, and check printers

Act now:
With the June 9th deadline fast approaching, there's no time to waste. If you haven't already, kick-start your compliance efforts now. This includes developing a comprehensive information security program, training your team, and implementing necessary data protection measures.

In conclusion, the FTC Safeguards Rule isn't just for banks. It applies to a wide range of businesses dealing with financial information. Make sure your organization is ready for the June 9th deadline by acting swiftly.

Don't be caught off guard - get the FTC Safeguards Checklist at https://ftc-compliance.com and ensure your business is ready for the deadline.

Bob Michie is the CEO of MetroMSP, LLC, a firm specializing in IT support and cybersecurity solutions for businesses.

About MetroMSP, LLC:
MetroMSP, LLC is a New Jersey-based IT service company dedicated to providing top-quality IT support and cybersecurity solutions for businesses locally, nationally, and internationally. For more information, visit https://www.metromsp.com.