More Delays for the Red Flags Rule
The Federal Trade Commission has announced a new delay for the Red Flags Rule. Enforcement will now begin June 1, 2010.
The delay, announced October 30, comes at the request of Congressional members, the FTC said. The rule was scheduled to go into effect November 1.
The announcement comes a week after the House of Representatives passed an amendment to the rule that would exclude certain businesses, including small healthcare, accounting, and legal practices. The House bill is currently in the Senate.
On the day FTC announced the delay, the US District Court for the District of Columbia ruled that the FTC may not apply the Red Flags Rule to attorneys.
This is the fourth delay for the rule, which was originally scheduled to take effect November 1, 2008. Industry groups, including healthcare providers and lawyers, have pushed for an exclusion, while others have complained that the rule lacked sufficient detail and guidance. The FTC has since been adding information and guidance online.