Complying with the Red Flags Rule
will be challenging for financial institutions and affected businesses," said Beckel.
The Federal Trade Commission (FTC) has yet again delayed enforcement of its Red Flags rule
, marking at least the fifth delay since the FTC introduced the rule in November 2007.
The resulting Red Flags Rule
requires all such entities that have "covered accounts" to develop and implement written identity theft prevention programs to help identify, detect and respond to patterns, practices or specific activities that could indicate identity theft.
The ABA complaint, prepared on a pro bono basis by Proskauer Rose, argued that the application of the rule to practicing lawyers was "arbitrary, capricious, and contrary to law," and that the FTC has failed "to articulate, among other things: a rational connection between the practice of law and identity theft, an explanation of how the manner in which lawyers bill their clients can be considered an extension of credit under the FACTA, or any legally supportable basis for application of the Red Flags Rule
to lawyers engaged in the practice of law.
3763) in October that would exempt physician practices with 20 or fewer employees--as well as small accounting and legal practices--from the Red Flags Rule
The regulations, known as the Red Flags Rule
, were issued on Nov.
WASHINGTON -- The federal Red Flags Rule
that requires creditors to check for identity theft may mean a few new procedures for office-based physicians, Patricia King said at the American Health Lawyers Association's annual meeting.
The FTC's Red Flags Rule
, effective August 1, requires lawyers to develop an identity theft prevention program to help protect clients.
Given the ongoing debate about whether Congress wrote the provisions too broadly, delaying the enforcement of the Red Flags rule
will allow industries and associations to share guidance with their members, provide low-risk entities an opportunity to use the templates in developing their programs, and give Congress time to consider the issue further," FTC Chairman Jon Leibowitz said.
The AMA is calling on FTC to republish its rule so that we can make the case that physicians should be excluded from the Red Flags Rule