In a surprise ruling Thursday, a federal district court blocked the Federal Trade Commission from enforcing ‘red flags’ identity fraud regulations against lawyers.
The American Bar Association argued a new identity theft prevention law was not intended to apply to law offices. U.S. District Judge Reggie Walton agreed in a ruling from the bench yesterday. He ordered the Federal Trade Commission not to apply its regulations to attorneys.
The rules, set to go into effect Nov. 1, require businesses that accept deferred payments from clients to create written policies outlining how they will prevent, detect and address identity fraud.
By Peter Vieth, with a hat tip to Lawyers USA .