FTC Delays Enforcement of Red Flags Rule for Fourth Time

This is the fourth time the FTC has delayed the controversial red flags rule and it follows shortly on the heels of the U.S. District Court for the District of Columbia’s ruling that the Red Flags Rule does not apply to lawyers.  It also follows the House of Representatives’ unanimous passage last week of HR 3763, which proposes to amend FCRA to exempt certain small businesses from the Red Flags Rule.  The FTC’s Red Flags Rule has been marred by confusion and uncertainty since it was proposed in July 2006.

Authored by Timothy Tobin