Citing Congressional requests and pending legislative changes, the Federal Trade Commission (FTC) again delayed the enforcement date for their "Red Flags" Rules. Originally, enforcement was to begin next week, on June 1, 2010, but has been delayed through December 31, 2010.
In its release on the subject, Commission Chief Jon Leibowitz urged Congress to act quickly in passing legislation that limits the scope of the Rules, which are designed to require "creditors" and "financial institutions" to address the risk of identity theft. "Congress needs to fix the unintended consequences of the legislation establishing the 'Red Flags' Rules -- and to fix this problem quickly. We appreciate the efforts of Congressmen Barney Frank and John Adler for getting a clarifying measure passed in the House, and hope action in the Senate will be swift," said Leibowitz. "As an agency we're charged with enforcing the law, and endless extensions delay enforcement."