FTC postpones looming Red Flags Rule compliance deadline
WASHINGTON—The Federal Trade Commission, which works for consumers to prevent fraudulent, deceptive, and unfair business practices, on May 28 announced it would grant a seven-month extension on Red Flags Rule compliance. Security Systems News earlier covered a CSAA-sponsored webinar that educated alarm company executives on how identity theft and the Red Flags Rule could possibly impact their business. The compliance deadline was originally set for June 1, 2010. The new compliance deadline is December 31.
A call to the FTC Public Affairs office for more on what prompted the extension was referred back to the agency’s press release.
“At the request of several Members of Congress, the Federal Trade Commission is further delaying enforcement of the ‘Red Flags’ Rule through December 31, 2010, while Congress considers legislation that would affect the scope of entities covered by the Rule,” the FTC press release reads.
CSAA VP marketing & programs Celia Besore released the following statement to Security Systems News. "The Central Station Alarm Association (CSAA) and the Alarm Industry Communications Committee (AICC) support the further delay in enforcing the rules and believe the applicability of the rules should be more narrowly tailored."
Compliance has been postponed a number of times. The Red Flags Rule actually became effective on January 1, 2008, with full compliance for all covered entities originally required by November 1, 2008. The FTC has issued several enforcement policies delaying enforcement of the Rule, according to the release. Most recently, the FTC announced in October 2009 that at the request of certain members of Congress, it was delaying enforcement until June 1, 2010. Since then, the Commission has received another request from Members of Congress for another delay in enforcement of the Rule till Dec. 31, 2010.