The Federal Trade Commission (FTC) has announced an additional enforcement delay of the ‘Red Flags’ identity theft rule. At the request of pro-optometry Members of Congress, the agency has extended the enforcement deadline until June 1, 2010. The AOA is now working to advance a measure in Congress that would exempt small business optometry practices from having to comply with the new requirements.

Originally, the Red Flags rule was due to take effect in October 2008. However, objections raised by Rep. Nydia Velazquez (D-NY), the Chair of the Small Business Committee, the AOA and other organizations have resulted in FTC officials announcing four separate delays in their plan to begin enforcement of the rule. 

Under legislation passed in 2003, businesses determined to be “creditors” would be required to implement appropriate programs to prevent and detect identity theft.  The regulation is targeted primarily at banks and other financial institutions which over recent years have reported growing numbers of serious identify theft incidents.

We will keep you informed as more details develop.

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