The Federal Trade Commission (FTC) has enacted certain Federal Identity Theft Laws applicable to every US organization. Although the FTC has published these rules on its website, many business leaders do not know that their organizations are legally obligated to perform specific steps to come into compliance with these laws.
The FTC identifies “employers” as its first category to which these laws apply. The laws provide that any employer whose action or inaction results in the loss of personally identifiable employee information is subject to a public fine and may also be sued in civil court for actual and, in some cases, punitive damages for losing that employee information.
The FTC investigates non-compliance with its Federal Identity Theft Laws. The FTC has investigative and law enforcement authority, which includes contempt of court actions for failure to comply with an investigative demand. (The [Federal Trade] Commission may "prosecute any inquiry necessary to its duties in any part of the United States" (FTC Act Sec. 3, 15 U.S.C. Sec. 43)).
Ignorance of these rules is not a defense to civil suits or government investigations and fines. The Federal Identity Theft Laws require an organization to document the steps it has taken to meet its compliance obligations. Without the required documentation, an organization has no affirmative defenses, especially to class action lawsuits. Organizations that choose to ignore these requirements may be shocked when they realize fines for violations can be as high as $500,000 per each occurrence.
Is YOUR business ready?
US Identity Theft Solutions, LLC provides the mandatory compliance requirements and the FTC required documentation for organizations of all sizes at a very reasonable institutional cost.
Contact us today to find out more about your risks as a business and how we can help.