Red Flags Rule postponed again

The Federal Trade Commission postponed the start of enforcement of the Red Flags Rule yet again, this time until Dec. 31, 2010.

The Red Flags Rule, which was first introduced in 2008, is supposed to cut down on identity theft. After several earlier delays, auto dealerships were supposed to start complying with the rule starting June 1, but the FTC announced the latest postponement on May 28.

The National Automobile Dealers Association says most dealers already comply with the rule, which was part of the federal Fair and Accurate Credit Transactions Act of 2003.

The rule requires businesses that are involved in credit transactions, such as car dealerships, to adopt written plans to detect and respond to instances of possible identity theft.

You can reach Jim Henry at autonews@crain.com

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