On May 28, 2010, just shy of the June 1st compliance deadline, the Federal Trade Commission (FTC) announced that it would again be postponing enforcement of the Red Flags Identity Theft Prevention Rule through December 31, 2010. This delay comes at the request of Congress, which has been considering legislation that would affect the scope of entities covered by the Rule. The FTC “urges Congress to act quickly to pass legislation that will resolve any questions as to which entities are covered by the Rule and obviate the need for further enforcement delays.” If Congress passes legislation that limits the scope of the Red Flags Rule with an effective date earlier than December 31, 2010, the Commission will begin enforcement as of the legislation’s effective date.
