In May 2013, the Federal Trade Commission released a new guide entitled Fighting Identity Theft with the Red Flags Rule: A How-To Guide for Business to help businesses and organizations determine whether they are subject to the FTC’s Red Flags Rule and how to fulfill the Rule’s requirements. The Guide includes information regarding what types of entities must comply with the Red Flags Rule, a set of FAQs and a four-step process to achieve compliance.… Continue Reading
On November 30, 2012, the Federal Trade Commission announced the issuance of an interim final rule that makes the definition of “creditor” in the Red Flags Rule consistent with the definition contained in the Red Flag Program Clarification Act of 2010.… Continue Reading
On December 18, 2010, President Obama signed the Red Flag Program Clarification Act of 2010 into law. The Act amends the FCRA to limit the scope of the Red Flags Rule with respect to the applicability of identity theft guidelines to creditors.
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On November 17, 2010, Representative John Adler (D-NJ) introduced a bill that would amend the Fair Credit Reporting Act to limit the scope of the FTC's Identity Theft Red Flags Rule.
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On February 25, 2010, the Federal Trade Commission filed a notice that it is appealing the D.C. District Court’s December 28, 2009 judgment in favor of the American Bar Association in American Bar Association v. FTC. The District Court’s summary judgment held that the FTC’s Identity Theft Red Flags Rule (“Red Flags Rule” or the … Continue Reading
The FTC today announced that it would, for the fourth time, delay enforcement of the Identity Theft Red Flags Rule. The enforcement date is now June 1, 2010 for creditors and financial institutions subject to FTC jurisdiction. The agency stated that the delay was requested by members of Congress, who are currently considering a bill … Continue Reading
It is being reported that the U.S. District Court for the District of Columbia agreed this morning with the American Bar Association’s argument that the FTC’s Identity Theft Red Flags Rule ("Red Flags Rule" or the "Rule") does not apply to lawyers. The Rule implements Section 114 and 315 of the Fair and Accurate Credit … Continue Reading
The November 1st deadline for compliance with the FTC’s Red Flags Rule Identity Theft Prevention Program requirements is rapidly approaching. Of late, there has been a flurry of activity aimed at limiting the scope of the rule. The Red Flags Rule, which was jointly promulgated by several federal agencies in November 2007, requires all “creditors” … Continue Reading
On July 29, 2009, the Federal Trade Commission ("FTC") announced another three-month delay in the enforcement of the provision of Identity Theft Red Flags and Address Discrepancies Rule (the "Rule") that requires creditors and financial institutions to implement an Identity Theft Prevention Program. The FTC noted that small businesses and entities with a low risk … Continue Reading
On May 13, 2009, the Federal Trade Commission (“FTC”) published a compliance template designed to assist financial institutions and creditors “at low risk for identity theft ” in developing the Identity Theft Prevention Program required by the FTC’s Identity Theft Red Flags and Address Discrepancies Rule (the “Rule”). The template is entitled “A Do-It-Yourself Prevention … Continue Reading
At the eleventh hour, the Federal Trade Commission announced that it will once again delay enforcement of the Red Flags Rule. The Red Flags Rule was promulgated pursuant to the Fair and Accurate Credit Transactions Act of 2003 ("FACTA"). The previous compliance date was May 1, 2009, which was an extension from the original deadline … Continue Reading
On March 20, 2009, the Federal Trade Commission (“FTC”) published its long-awaited guide to the Red Flags Rule (the “Rule”), entitled “Fighting Fraud with Red Flags Rule: A How-To Guide for Business.” The guide applies to creditors and certain financial institutions (such as state-chartered credit unions and mutual funds that offer accounts with check-writing privileges) … Continue Reading
On March 20, 2009, the Federal Trade Commission published a Red Flags Rule compliance guide for businesses, entitled “Fighting Fraud with the Red Flags Rule.” The guide offers an overview of the Rule and practical steps businesses need to take to comply. In addition, the guide addresses the issue that has raised the most concern … Continue Reading
Massachusetts recently announced that it is extending the deadline for compliance with new state data security regulations. In consideration of the current economic climate, Massachusetts has extended its original compliance deadline of January 1, 2009. The new compliance deadline will be phased in. By May 1, 2009, companies that are subject to the regulations must … Continue Reading