Businesses may be facing their last chance to comply with the FTC identity theft Red Flags Rule as the compliance deadline was extended over the Summer to November 1, 2009. On July 29, 2009, the Federal Trade Commission (“FTC”) announced that it will delay enforcement of its identity theft “Red Flags Rule”until November 1, 2009. This is the third time the FTC has delayed the enforcement date of the Red Flags Rule and each time the rationale has been largely the same – concern that some companies were “uncertain” or “not aware” that they were subject to the Rule (the prior delayed enforcement dates were May 1, 2009 and August 1, 2009). The latest announcement was accompanied by further FTC commitments to educate businesses about compliance with the Red Flags Rule. Given the confusion surrounding the Rule and its broad scope, companies that have not yet done so should carefully assess whether the Red Flags Rule applies to them and if so, develop an appropriate program. Hogan & Hartson’s guidance on this latest Red Flags development is attached here.
