AMA Sues FTC, Seeking Exception from FTC's Red Flag Rule similar to Lawyer Exception

Recently over at the ABAJournal, Martha Neil, in an article entitled, ‘AMA Takes Page from ABA Playbook, Sues FTC Over Red Flags Rule’, noted that;

The AMA filed a lawsuit today contending that health care organizations should not be included among businesses such as banks, credit card issuers and mortgage lenders required by the Federal Trade Commission's so-called Red Flags Rule to adopt new measures to protect customers from identity theft.

The AMA is seeking declaratory and injunctive relief and attorney's fees against the FTC for what its complaint describes as ‘an arbitrary and capricious exercise of FTC power’.

The AMA explains in a press release titled ‘AMA-led lawsuit seeks relief from unlawful enforcement of misguided federal regulation’, that this most recent litigation does not impact the June 1 deadline for enforcement of the FTC’s anti-identity-theft rules.

The AMA press release also links to further information about what doctors need to do to comply with the Red Flags Rule.

The AMA’s suit against the FTC mirrors an earlier lawsuit against the FTC by the American Bar Association. In the ABA-FTC suit, the federal District of Columbia court held that the Red Flags Rule doesn't apply to lawyers. That decision can be found here, American Bar Association v. FTC, 671 F. Supp. 2nd 64 (2009).

For more information on the FTC and compliance with the Red Flag Rule;

The FTC mandates compliance with its newly promulgated Red Flag Rule by June 1, 2010.

FTC to Appeal Judge’s Decision That ‘Red Flags’ Rule Doesn’t Apply to Lawyers

After ABA Wins ‘Red Flags’ Suit Over ID Theft Rules, Accountants Sue, Too