Alert November 04, 2008

FTC Delays Enforcement of Red Flags Rule

The FTC announced that it has suspended enforcement of its “Red Flags” rule until May 1, 2009, to give creditors and financial institutions more time to implement their written identity theft programs. In its press release, the FTC noted that some industries and entities within its jurisdiction were uncertain of the applicability of the FTC’s Red Flags rule to them, and that the delay would allow these entities to establish compliant identity theft programs. The action does not affect the November 1, 2008 deadline for compliance by creditors and financial institutions that are subject to the Red Flags rules issued by the federal banking agencies. The FTC also noted that its address discrepancy rule, which applies to all users of consumer reports, and its change-of-address rule, which applies to card issuers, has gone into effect, as scheduled, on November 1, 2008. Click here for the FTC’s press release and here for the FTC’s Red Flags enforcement policy.