The Federal Trade Commission (FTC) has announced that it will delay enforcement of the Red Flags Rule until Dec. 31, 2010 at the request of several members of Congress. In a press release, available here, the FTC stated that Congress would be considering "legislation that would affect the scope of entities covered by the Rule."
The Red Flags Rule, developed to “detect, and respond to the warning signs, or 'red flags,' that could indicate identity theft,” was mandated by the Fair and Accurate Credit Transactions Act of 2003. The rule has been in effect since Jan. 1, 2008, but the FTC has now postponed enforcement on five separate occasions, for a delay totaling 26 months, to allow businesses additional time for compliance.
While organized medicine continues to challenge the FTC decision that medical practices are among entities that must comply with the "Red Flag" rules, the TMA has developed an identity theft guidance topic and policy template for TMA member medical practices to use, available in the online Law Guide (member login required).
For more information, contact the TMA Legal Department at 800-659-1862.