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FTC Moves "Red Flag" Deadline to June 2010

Citing a request from House lawmakers, the Federal Trade Commission announced on October 30 that it was delaying, for the fourth time, enforcement of rules...
November 17, 2009

Citing a request from House lawmakers, the Federal Trade Commission announced on October 30 that it was delaying, for the fourth time, enforcement of rules requiring a broad mix of entities to implement identity theft prevention measures, moving the deadline from November 1, 2009 to June 1, 2010. Under the rules, financial institutions and "creditors" are required to develop programs that identify relevant patterns, practices, and specific activities that are "red flags" for possible identity theft.

The extension is expected to give Congress more time to address concerns from industry groups related to the FTC's broad application of its so called "red flag" rules. The extension also follows House passage of a bill (H.R. 3763) on October 20 to exclude certain small businesses and to require the FTC to issue new regulations allowing any company to apply for an exemption. And in a related development, the U.S. District Court for the District of Columbia Oct. 30 issued a formal order barring the FTC from enforcing the rules against attorneys.