The filing of a lawsuit on May 21, 2010, by the American Medical
Association (AMA) against the Federal Trade Commission (FTC) could
signal yet another delay of the enforcement deadline of the Red
Flags Rule.
The Red Flags Rule requires many businesses to develop,
implement and administer an Identity Theft Prevention Program
designed to detect the warning signs or red flags of identity
theft, as well as prevent and mitigate them. The FTC is scheduled
to begin enforcement for non-bank businesses on June 1, 2010.
Federal regulatory banking agencies have already begun enforcing
the rule.
The AMA's lawsuit , filed on behalf of
physicians, follows on the heels of successful lawsuits brought by
the American Bar Association (ABA) on behalf of lawyers and the
American Institute of Certified Public Accountants (AICPA) on
behalf of accountants. In those cases, a federal court granted
summary judgment for the ABA, and enjoined the FTC from enforcing
the Red Flags Rule against
