FTC Delays Red Flags Rule (Again)
Much like the Energizer Bunny, it’s the extension that just keeps on going.
Slated to be enforced on June 1, the Federal Trade Commission has pushed back its Red Flags Rule deadline to Dec. 31, 2010, while Congress contemplates legislation that “would affect the scope of entities covered by the Rule,” according to the commission.
The Rule, which requires creditors to implement written identity theft prevention programs, has already been delayed numerous times.
“Congress needs to fix the unintended consequences of the legislation establishing the Red Flags Rule – and to fix this problem quickly. We appreciate the efforts of Congressmen Barney Frank and John Adler for getting a clarifying measure passed in the House, and hope action in the Senate will be swift,” FTC Chairman Jon Leibowitz said in a statement. “As an agency we’re charged with enforcing the law, and endless extensions delay enforcement.”
The Red Flags Rule became effective on Jan. 1, 2008. Its first enforcement deadline was slated for Nov. 1, 2008.
Read more about the rule here.
Much like the Energizer Bunny, it’s the extension that just keeps on going.
Slated to be enforced on June 1, the Federal Trade Commission has pushed back its Red Flags Rule deadline to Dec. 31, 2010, while Congress contemplates legislation that “would affect the scope of entities covered by the Rule,” according to the commission.
The Rule, which requires creditors to implement written identity theft prevention programs, has already been delayed numerous times.
“Congress needs to fix the unintended consequences of the legislation establishing the Red Flags Rule – and to fix this problem quickly. We appreciate the efforts of Congressmen Barney Frank and John Adler for getting a clarifying measure passed in the House, and hope action in the Senate will be swift,” FTC Chairman Jon Leibowitz said in a statement. “As an agency we’re charged with enforcing the law, and endless extensions delay enforcement.”
The Red Flags Rule became effective on Jan. 1, 2008. Its first enforcement deadline was slated for Nov. 1, 2008.
Read more about the rule here.
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