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Health Groups Seek Exclusion from Red Flags Rule

PRIVACY LAW—U.S.

February 2, 2010

Four national medical organizations representing dentists, physicians and veterinarians are asking the Federal Trade Commission (FTC) to exclude their members from a new regulation aimed at preventing identity theft, according to an American Medical Association (AMA) press release. The groups say the so-called "Red Flags Rule," imposes an unjustified, unfunded mandate on health professionals for detecting and responding to identity theft. A U.S. District Court recently ruled in favor of an American Bar Association claim that lawyers should be exempt from the rule. That ruling, says AMA President J. James Rohack, M.D., "sends a clear signal that the FTC needs to re-evaluate the broad application of the Red Flags Rule."
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