Red Flags Clarification Becomes Law
PRIVACY LAW—U.S.December 21, 2010
President Barack Obama has signed the Red Flag Program Clarification Act of 2010 into law, amending the Fair Credit Reporting Act and limiting the Federal Trade Commission's Identity Theft Red Flags Rule. The Hunton & Williams Privacy and Information Security Law Blog reports that the new law limits the application of the Red Flags Rule to exclude creditors "that advance funds on behalf of a person for expenses incidental to a service provided by the creditor to that person." The change addresses concerns that the rule previously extended to "entities not typically thought of as creditors," such as legal firms and healthcare providers, the report states.