FTC Grants Three-Month Delay of Enforcement of
‘Red Flags’ Rule Until November 1, 2009

The Federal Trade Commission has delayed – for the third time – new "Red Flags Rule" until November 1 to give affected businesses more time to develop and implement identity theft prevention programs. The Rule was schedule to take effect on August 1. 

This third-delay is primarily due to the FTC's realization that the Red Flags Rule cover many more small businesses. And these are small businessess that are not traditionally covered by FTC privacy rules, such as doctor's offices and law offices. The American Bar Association (ABA) and others have argued that the FTC has gone too far in implementing the law by extending its definition of “creditors” to include lawyers and doctors. The Red Flags Rule requires creditors, defined as those who provide services for deferred payment, to create and maintain policies guarding the personal information of their clientele. The agency has delayed implementation for health care providers who raised similar objections and ABA officials believe that a similar step is possible for attorneys, but only if the FTC hears from Congress.

RV dealers who have not established a written plan and have not appointed a plan administrator will benefit from this additional delay. However, you can be sure there will be a large nationwide compliance sweep after November 1, 2009. During this latest extension, the FTC has developed a sample templates and materials to assist smaller businesses with compliance.

For RVDA members-only FTC Red Flags rule compliance information, visit:
http://www.rvda.org/AM/Template.cfm?Section=Government_Relations1&Template=/
MembersOnly.cfm&NavMenuID=805&ContentID=6321&DirectListComboInd=D

For more information on the FTC’s delay, visit:  http://www.ftc.gov/opa/2009/04/redflagsrule.shtm

For more information on complying with the FTC’s Red Flags Rule, please visit the RVDA Members only website, or click here:  http://www2.ftc.gov/bcp/edu/microsites/redflagsrule/index.shtml