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FTC Again Delays Enforcement of Red Flags Rule

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  • Baker, John M.
    The Federal Trade Commission announced today that, at the request of several Members of Congress, it is further delaying enforcement of the red flags rule
    Message 1 of 1 , May 28, 2010
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      The Federal Trade Commission announced today that, at the request of several Members of Congress, it is further delaying enforcement of the "red flags" rule through December 31, 2010, while Congress considers legislation that would affect the scope of entities covered by the rule. The FTC said that a limited further postponement is warranted so that it does not begin to enforce a regulation that Congress plans to supersede. It urged 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.

      The red flags rule, 16 C.F.R. ยง 681.1, requires financial institutions and creditors with covered accounts to develop and implement written identity theft prevention programs to identify, detect, and respond to red flags that could indicate identity theft. Banks, thrifts, and credit unions have been subject to the rule since its original compliance date of November 1, 2008, but the FTC has issued a series of extensions for other financial institutions and creditors, with the most recent prior extension being until June 1, 2010.

      The FTC announcement, with a link to its formal action, is online at

      http://www.ftc.gov/opa/2010/05/redflags.shtm

      For my most recent post on the red flags rule, see

      http://groups.yahoo.com/group/FundLaw/message/1259


      John M. Baker <JMB@...>
      Stradley Ronon Stevens & Young, LLP http://www.stradley.com
      1250 Connecticut Avenue, NW, Suite 500
      Washington, DC 20036
      202.419.8413
      202.822.0140 fax
      FundLaw Listowner http://groups.yahoo.com/group/fundlaw
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