FTC Releases Expansive Interpretation of "Red Flags" Rule for a Wide Range of Industries

Financial Institutions Regulatory Update

The Federal Trade Commission has issued guidance regarding its identity theft Red Flags Rule which indicates that the FTC takes a very broad view of the types of companies and customer relationships that may be covered by the Rule. Many industry sectors, such as retailers, mortgage brokers, health care providers, broker-dealers, and telecommunications companies, may be surprised that they could be covered by the broad scope of the FTC’s interpretation. FTC enforcement of the rule begins on May 1, 2009.