By an overwhelming vote of 400-0, the U.S. House approved legislation on October 20, 2009, that exempt certain businesses from the Federal Trade Commission’s Red Flag Rules. As part of that legislation, the FTC is also required to issue new regulation setting out the exemption processes that allow any business to apply for an exemption.
With November 1, 2009 as an announced Red Flag Rule compliance deadline, it is very likely that this new ruling will cause the FTC to at least consider the announcement of another delay for this compliance deadline.
Under the current ruling, health care, accounting, and legal practices with 20 or fewer employees will be excluded from the definition of “creditor”. You can view this ruling by clicking the following link: H.R. 3763
For more information, you may also want to follow the Mintz Levin Privacy Matters Blawg. Cynthia Larose is a member in Mintz Levin’s Corporate Group and leads its Privacy and Security practice. She has posted an informative update on this current ruling and you can read her blog entry by clicking on the following link: