FTC delays Red Flags Rule (again)
The Federal Trade Commission (FTC) has announced it is yet again delaying implementation of the Red Flags Rule until June 1, 2010.
The Red Flags Rule is an anti-fraud regulation, requiring creditors and financial institutions with covered accounts to implement programs to identify, detect and respond to the warning signs, or "red flags," that could indicate identity theft. The rule requires physicians and hospitals to adopt written plans for tracking and responding to indicators of identity theft in their billing operations.
The FTC was originally supposed to start enforcing the Red Flags Rule in 2008, but this marks the fourth time it has been postponed, after its most recent delay in July. According to the commission, it is delaying enforcement at the request of members of Congress.
The Red Flags Rule is an anti-fraud regulation, requiring creditors and financial institutions with covered accounts to implement programs to identify, detect and respond to the warning signs, or "red flags," that could indicate identity theft. The rule requires physicians and hospitals to adopt written plans for tracking and responding to indicators of identity theft in their billing operations.
The FTC was originally supposed to start enforcing the Red Flags Rule in 2008, but this marks the fourth time it has been postponed, after its most recent delay in July. According to the commission, it is delaying enforcement at the request of members of Congress.