The Federal Trade Commission's Red Flag Rules, which are set out in the Fair and Accurate Credit Transactions Act, require financial institutions to develop plans for identifying "red flag" transactions that could indicate fraud or ID theft. They became effective in 2008, but the full compliance deadline keeps changing.
First, it was Nov. 1, 2008. Then it was pushed to May 1, 2009, then to Aug. 1, then to Nov. 1, 2009. On Friday, however, the FTC announced it would not begin enforcing the Red Flag Rules until June 1, 2010. SC Magazine reports the latest extension comes at the request of legislators -- likely those who passed a bill in the House last month that would exempt health care, legal and accounting practices with fewer than 21 employees from compliance .
If the bill passes in the Senate and is signed into law, the loudest opposition to the rules will subside. But attorneys don't have to wait for the legislative process to end. bizjournals.com reports the U.S. District Court for the District of Columbia ruled Friday that the FTC cannot require legal practices to comply.