The Federal Trade Commission (FTC) has issued another 90-day delay in the enforcement of its Red Flags Rule, which would have gone into effect this Saturday, Aug. 1. The FTC announced a delay until Nov. 1, 2009 on its Website today.
Thanks to many ADA and CDA members contacting lawmakers, the FTC has granted this extension to assist small businesses.
The rule would require financial institutions and creditors to develop written plans to prevent and detect identity theft. The FTC originally deemed dentists and physicians as creditors who are subject to the rule when they don’t receive payment in full from their patients at the time of treatment. The ADA believes that characterizing dentists as “creditors” in this context is incorrect.
Legislation introduced by Rep. John Adler (D-N.J.), H.R. 2345, would permanently exempt small healthcare providers from the requirements of the Red Flags Rule. This latest 90-day extension of the enforcement moratorium gives much more time to build support in Congress for the bill, which already has 32 co-sponsors.
The CDA will keep you informed as more information becomes available. To view the FTC announcement on Red Flag Rules, please go to http://www.ftc.gov/opa/2009/07/redflag.shtm.