The Federal Trade Commission (FTC) today announced that it will again delay enforcement of the Red Flags Rule until November 1, 2009 in order to assist small businesses and other entities with compliance issues. The FTC also plans to offer additional guidance "to clarify whether businesses are covered by the Rule." Implementation for the Red Flags Rule had been scheduled for August 1, 2009.
The Red Flags Rule, developed to "detect, and respond to the warning signs, or 'red flags,' that could indicate identity theft," was mandated by the Fair and Accurate Credit Transactions Act of 2003. Enforcement of the Rule was previously postponed twice by the FTC in order "to give creditors and financial institutions more time to develop and implement written identity theft prevention programs." The FTC press release announcing the latest delay is available at this link.
For more information on the Red Flags Rules, please see these earlier Waller Lansden bulletins:
- FTC Postpones Enforcement of Red Flags Rule Until August 1, 2009 (April 30, 2009)
- FTC To Begin Enforcing "Red Flags Rules" May 1st (March 18, 2009)
Federal Trade Commission Delays Enforcement of Red Flags Rules; New Identity Theft Program Could Impact Healthcare Providers (Oct. 27, 2008)
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