FTC Delays Enforcement of the Red Flag Rules
Kegler Brown Litigation Alert October 23, 2008
On October 22, 2008, the Federal Trade Commission (FTC) announced that it is delaying enforcement of the Red Flag (Identity Theft Prevention) Rules until May 1, 2009.
The delay in enforcement of the Red Flag Rules only applies to entities that are subject to the jurisdiction of the FTC, generally those subject to the Fair Credit Reporting Act. It does not affect those subject to regulation by other federal agencies that also promulgated the same regulations.In addition to the FTC, The Office of the Comptroller of the Currency, The Federal Reserve System, The Federal Deposit Insurance Corporation, The Office of Thrift Supervision and the National Credit Union Administration issued identical rules. The compliance date for these other agencies, November 1, 2008, remains unchanged.
In addition, the delay applies only to the Red Flag Rules and does not affect the other regulations promulgated pursuant to the Fair and Accurate Credit Transactions Act, including regulations concerning the duties of users of consumer reports regarding "address discrepancies".