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FTC delays implementation of Red Flags rule until Nov. 1

July 29, 2009

Washington -- The Federal Trade Commission (FTC) again delayed implementation of its new rules to fight identity theft. The enforcement date for the controversial Red Flags rule is now Nov. 1, 2009, the agency reports today in a prepared statement.

Washington

-- The Federal Trade Commission (FTC) again delayed implementation of its new rules to fight identity theft. The enforcement date of the controversial Red Flags rule is now Nov. 1, 2009, the agency reports today in a prepared statement.

FTC reports that its staff will "redouble its educational efforts" to assist small businesses and other entities comply with the identity theft rules -- which were slated for enforcement on Aug. 1. The deadline extension was granted to give "creditors and financial institutions more time to review this guidance and develop and implement written identity theft prevention programs."The anti-fraud regulation requires businesses, including veterinary practices, implement programs to identify, detect and respond to the warning signs of identity theft.

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The FTC’s Red Flags Web site, www.ftc.gov/redflagsrule, offers resources, including compliance templates for businesses.

FTC reports that it will soon offer small businesses additional compliance guidance.

"Among other things,
 (FTC) staff will create a special link for small and low-risk entities on the Red Flags Rule Web site with materials that provide guidance. FTC has already posted FAQs that address how the commission intends to enforce the rule. Go to: www.ftc.gov/bcp/edu/microsites/redflagsrule/faqs.shtm."The three-month extension, coupled with this new guidance, should enable businesses to gain a better understanding of the rule and any obligations that they may have under it," FTC reports in a statement. "These steps are consistent with the House Appropriations Committee's recent request that the commission defer enforcement in conjunction with additional efforts to minimize the burdens of the rule on health-care providers and small businesses with a low risk of identity theft problems."

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