Email Alert
May 25, 2010
By Gerald "Jud" DeLoss*
The American Medical Association, American Osteopathic Association, and Medical Society for the District of Columbia have commenced legal action against the Federal Trade Commission (FTC) seeking to have the court hold that the Red Flags Rule not apply to their members. FTC has taken the position that physicians are "creditors" under the Rule and that physicians must comply with the Rule by June 1, 2010. The associations argue that the FTC exceeded its statutory authority in applying the Rule to physicians and acted arbitrarily and capriciously. In addition, the complaint contends that the FTC failed to follow the required notice and comment procedures under the Administrative Procedures Act. The complaint sets forth the numerous delays in the enforcement date for the Rule and the discrepancies between the Rule and the Fair and Accurate Credit Transactions Act. The legal action also references the recent American Bar Association action that resulted in the U.S. District Court for the District of Columbia ruling that the Red Flags Rule did not apply to lawyers.
Access the complaint, which specifies the legal arguments and relief requested.
**We would like to thank Gerald "Jud" E. DeLoss, Esquire (Krieg DeVault LLP, Chicago, IL), for providing this email alert. We would also like to thank the Health Information and Technology Practice Group for sharing this email alert with the Physician Organizations Practice Group.