FTC Delays Enforcement of the 'Red Flag's' Rule Until November 1, 2009
On July 29, 2009, the Federal Trade Commission ("FTC") announced that it would redouble its efforts to educate small business (including most health care providers) about compliance with the "Red Flags" Rule by providing additional resources and guidance to clarify whether businesses are covered by the Rule, and what they must do to comply. In the spirit of this effort, the FTC has decided to further delay enforcement of the Rule until November 1, 2009.
I suspect that many health care providers subject to the Red Flag's Rule would not have been in compliance on the original August 1, 2009 enforcement date, and therefore still need to put together a compliance program. The good news is that compliance is relatively easy and will take very little time to complete. I recommend reviewing the FTC's newly added Red Flag's Rule: "Frequently Asked Questions" section to determine if your business is subject to compliance under the Rule. If so, see the FTC's compliance template (pdf) for businesses at low risk for identity theft. It is short, straightforward and simple to use.
