The U.S. Federal Trade Commission (FTC) has delayed implementing the so-called Red Flags Rule through December 31 to give the U.S. Congress time to amend the identity theft regulations.
Under the rule, the FTC and other agencies would require creditors and financial institutions to develop and implement programs to help identify, detect, and respond to patterns, practices, or specific activities -- known as red flags -- that could indicate identity theft.
The FTC's action follows the filing of a lawsuit last week by the American Medical Association, the American Osteopathic Association, and the Medical Society of the District of Columbia to prevent the FTC from adding physicians to the identity theft regulations.
The FTC had 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.
The agency received another request this month from Congress for another delay in enforcement of the rule beyond June 1.
The FTC noted that if Congress passes legislation limiting the scope of the Red Flags Rule with an effective date earlier than December 31, 2010, the agency will begin enforcement as of that date.
Related Reading
Readying for the Red Flags Rule: It pays to be prepared, May 26, 2009
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