The Federal Trade Commission (FTC) announced today that they are delaying the compliance deadline for the red flags rule until December 31, 2010.
For the past two years, the AMA has made the case to the FTC that physicians are not creditors like banks and lenders; therefore, the red flags rule should not apply to them.
Last week, the AMA filed a lawsuit asking a federal court to prevent the FTC from extending the red flags rule to physicians. The latest extension to the compliance date is a promising sign that the AMA lawsuit has caught the attention of the FTC.
Last November, a federal court blocked the rule from being applied to attorneys after the FTC was found to be extending its regulatory power beyond that authorized by Congress. The AMA hopes that this latest extension will be long enough for the FTC to take a good, hard look at the Red Flag Rule and exclude physicians from this regulation.
As always, the WVSMA will keep you informed of compliance issues relating to the Red Flag Rules.
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