FTC Delays Red Flags Enforcement Yet Again

Set to begin enforcement on November 1, 2009, the Federal Trade Commission once again has delayed enforcement of the Red Flags Rule. Enforcement will now begin June 1, 2010.

As stated in the FTC press release announcing the enforcement delay, the Red Flags Rule "was promulgated under the Fair and Accurate Credit Transactions Act, in which Congress directed the Commission and other agencies to develop regulations requiring “creditors” and “financial institutions” to address the risk of identity theft. The resulting Red Flags Rule requires all such entities that have “covered accounts” to develop and implement written identity theft prevention programs to help identify, detect, and respond to patterns, practices, or specific activities – known as “red flags” – that could indicate identity theft." The FTC's press release may be found here.