NAID : News : Red Flags Rule Enforcement Deadline Postponed

RED FLAGS RULE ENFORCEMENT DEADLINE POSTPONED

Today was supposed to mark the long awaited enforcement deadline of the Red Flags Rule. However, last Friday, for the fifth time in two years, it was postponed again. The new enforcement deadline is January 1, 2011.

In the FTC announcement, which came in the closing hours of the last business day before the deadline, the regulator blamed Congressional pressure for the delay. The FTC expressed more than a little frustration at being pressured into the decision.

In commenting on the postponement, NAID chief executive officer Bob Johnson stated, “Yes, I am disappointed—but only a little. First of all, the reason for the Congressional pressure, which is really coming from some business sectors, is because it is a very serious data protection measure and the FTC is chomping at the bit to enforce it. Second, as long as this new law stays in the news prior to its enforcement, we have something to talk to customers about.” Johnson also added, “Frankly, I am a little glad to have more time to prepare our members for the opportunities associated with the Red Flags Rule. We can use the time to make sure we are ready.”

Over the last two weeks, more than 300 NAID member representatives attended impromptu webinars to learn more about what the Red Flags Rule and the pending enforcement deadlines meant to the secure destruction industry. NAID will move forward with other educational materials, though it will push back the release date a month or two.

The next edition of the NAIDnews magazine, mailed later this month, will have complete background on the Red Flags Rule, its relevance to secure destruction services, and its likely impact on the industry.

The regular semi-monthly edition of NAIDDirect will be sent later this week.