More on "Red Flag" Rule

On October 29, 2009, the U.S. District Court for the District of Columbia blocked the Federal Trade Commission from enforcing ‘red flags’ identity fraud regulations against lawyers.
In August, the American Bar Association sued the FTC, claiming that it exceeded its authority by imposing the regulations on attorneys outside of the financial sector, and that the regulations would be an undue burden on attorneys. The FTC’s position is that under the Fair and Accurate Credit Transactions Act, attorneys who accept deferred payments from clients are creditors. The ABA filed a motion for partial summary judgment. It requested that the Court hold that the regulation is not applicable to attorneys engaged in the practice of law. Judge Reggie Walton granted the ABA’s request. He held that Congress did not intend that lawyers be considered creditors under the Act. The FTC can appeal.

http://www.securityprivacyandthelaw.com/uploads/file/ABA%20SJ%20Decision.pdf