Court Issues Decision Limiting Scope of FTC’s Red Flags Rule

Morrison & Foerster LLP

Yesterday, the U.S. District Court for the District of Columbia issued the attached opinion upholding the American Bar Association's challenge to the FTC’s Identity Theft Red Flags Rule and enjoining the FTC from enforcing its Rule against lawyers. This memorandum opinion follows an October 29 oral argument and bench ruling. This ruling may have significance beyond the legal profession, and may limit the FTC’s ability to enforce its Red Flags Rule against professionals, retailers, health care providers and other businesses that bill their clients and customers in a manner similar to lawyers.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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