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

Financial Institutions Regulatory Update
April 1, 2009

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.