Tuesday, November 16, 2010

Red Flags Fluttering Again for Law Firms? Debate continues...

When last heard from this summer, the FTC Red Flag Rules were on hold. In late 2009, a court ruled they did not apply to law firms. But the FTC continued the fight and appealed the decision in 2010. This week, they squared off against the ABA before a DC federal appeals court.

The Blog of the Legal Times provides an update of the debate and discussion. In summary, issues argued include the extent to which Congress has the ability to regulate lawyers and the extent to which the Red Flag Rule language can be interpreted to extend to lawyers as "credit" providing organizations. Based on the judges questioning (see linked article), it's like that the resolution of this issue is far from concluded...

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