Thanks to members of Congress, enforcement of the Red Flag Rules will not begin on June 1, 2010. In a May 28 press release, the Federal Trade Commission (FTC) announced it would delay enforcement until Dec. 31, 2010. But, enforcement could start sooner.
Congress requested another delay because it is still working on legislation that would limit the scope of the Red Flag Rules. On Oct. 20, 2009, the House of Representatives unanimously passed HR 3763, a bill that would automatically exempt some business from the Red Flag Rules and allow others to request an exemption. The Senate has taken no action on the bill since it went to the Senate's Committee on Banking, Housing, and Urban Affairs on Oct. 21, 2009.
According to the FTC, "a limited further postponement is warranted so that it does not begin to enforce a regulation that Congress plans to supersede." However, the FTC states it will start enforcement before the end of the year if Congress passes a law with an earlier effective date.
Note: A federal judge may have the final say on whether physicians are subject to the Red Flag Rules. On May 21, 2010, several medical societies including the AMA and the American Osteopathic Association filed a lawsuit against the FTC with the United States District Court for the District of Columbia. The plaintiffs seek to bar the FTC from applying the Rules to physicians.