The Federal Trade Commission (FTC) today announced that it will delay enforcement of the Red Flags Rule until Dec. 31, 2010 at the request of several Members of Congress. In a press release, available here , the FTC stated that Congress would be considering " legislation that would affect the scope of entities covered by the Rule."
The Red Flags Rule, developed to "detect, and respond to the warning signs, or 'red flags,' that could indicate identity theft," was mandated by the Fair and Accurate Credit Transactions Act of 2003. The rule has been in effect since Jan. 1, 2008, but the FTC has now postponed enforcement on five separate occasions for a delay totaling 26 months to allow businesses additional time for compliance.
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