FTC Delays Enforcement of Red Flags Rule
On April 30, 2009, the Federal Trade Commission ("FTC") announced that it will delay enforcement of the "Red Flags Rule" until August 1, 2009. Prior to this announcement, the rules were scheduled to go into effect today, May 1, 2009. Promulgated on November 1, 2007 under the Fair and Accurate Credit Transactions Act of 2003, the "Red Flags Rule" requires any business that accepts payment over time for goods or services on a covered account to adopt and implement an identity theft prevention program. In addition to the enforcement delay, the FTC stated that it will release a "template" to assist businesses with a low risk of identity theft, such as those that know their customers personally, with the development of compliant identity theft prevention programs. The template will be available on the FTC's website.