FTC Delays Enforcement of the Red Flags Rule

Upon request from members of Congress, the Federal Trade Commission (FTC) has once again pushed back the enforcement of the Red Flags Rule, this time until December 31, 2010.  This is the fifth such delay by the FTC.  Via FTC press release:

The Rule became effective on January 1, 2008, with full compliance for all covered entities originally required by November 1, 2008. The Commission has issued several Enforcement Policies delaying enforcement of the Rule. Most recently, the Commission announced in October 2009 that at the request of certain Members of Congress, it was delaying enforcement of the Rule until June 1, 2010, to allow Congress time to finalize legislation that would limit the scope of business covered by the Rule. Since then, the Commission has received another request from Members of Congress for another delay in enforcement of the Rule beyond June 1, 2010.

The Commission urges Congress to act quickly to pass legislation that will resolve any questions as to which entities are covered by the Rule and obviate the need for further enforcement delays. If Congress passes legislation limiting the scope of the Red Flags Rule with an effective date earlier than December 31, 2010, the Commission will begin enforcement as of that effective date.

We have recently reported on the AMA and other medical associations suing the FTC over applicability of the Rule to healthcare providers.  There was no mention of the AMA's claims or law suit in the press release.

You can read the full press release here.

"FTC Extends Enforcement Deadline for Identity Theft Red Flags Rule," FTC Press Release (May 28, 2010).

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