July 30, 2009 / Law Alert

FTC Delays Enforcement of Red Flags Rule

Yesterday the FTC announced that it would delay enforcement of its Red Flags Rule until November 1, 2009. Enforcement had been scheduled to begin August 1, 2009. This postponement comes as good news for the many organizations that have not yet instituted an appropriate policy pursuant to the rule. The Red Flags Rule is an FTC regulation that requires "creditors" with "covered accounts" to have a program in place to detect identity theft.