The Federal Trade Commission announced that it is once again pushing back enforcement of the “Red Flags” Rule. This time through December 31, 2010 so that Congress can consider legislation that would clarify and fix affect the scope of entities covered by the Rule.
Federal Trade Commission statement:
The Rule became effective on January 1, 2008, with full compliance for all covered entities originally required by November 1, 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.
The Red Flags Rule is part of the Fair and Accurate Credit Transactions Act of 2003 (FACTA). It requires “creditors” and “financial institutions” to address the risk of identity theft.