Tuesday, June 1, 2010

Red Light on FTC Red Flag Rules

The FTC Red Flag Rules were already on hold for law firms, based on the successful challenge by the ABA. It looks like heat is off for the general populace as well. At least for the moment. The FTC just announced that enforcement of the rules will be delayed at least until January 1, 2011. While the rule went into effect for some entities in 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."
Law firms are not the only organizations upset at the new regulations. Shortly after the ABA challenge, the accounting industry brought its own lawsuit. And the American Medical Association has just done the same.

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