In response to Federal Trade Commission regulations adopted in 2007, a Sample Red Flag Ordinance has been drafted for use by Georgia cities. These regulations require utility companies and creditors, including municipal utilities, to implement red flag policies to protect consumers from identity theft.

Although the federal regulations do not mandate adoption of these policies as an ordinance, they must be formally approved by the governing body by May 1, 2009. The sample ordinance provided can assist cities in creating or updating their red flag policies.

Cities should work with their attorneys to tailor the sample policy to their specific needs and ensure compliance with the federal regulations outlined in 16 CFR Part 681. If the sample provisions do not fit, cities may modify the ordinance or develop a unique policy.

While there is no private right of action for failure to adopt a red flag policy by the deadline, addressing identity theft is crucial, and adopting an effective policy promptly is highly recommended.