Administrative Law

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

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The Federal Trade Commission says it will appeal a federal judge’s decision upholding the American Bar Association’s position that the so-called Red Flags Rule doesn’t apply to lawyers.

The FTC filed a notice of appeal yesterday in the District of Columbia case, reports the Blog of Legal Times.

The case is of import not only because it would require law firms, if the FTC prevails, to implement anti-fraud measures imposed on all “creditors” but because it would expand federal power to regulate lawyers.

In a written statement, ABA President Carolyn B. Lamm says: “We are disappointed that the Federal Trade Commission has decided to appeal its loss of the Red Flags litigation in the district court. The D.C. Circuit Court of Appeals resoundingly upheld the American Bar Association’s lower-court victory in 2005 against the commission in the Gramm-Leach-Bliley lawsuit, and we are anticipating no less a victory in this case. “

Earlier coverage:

ABA Journal: “Taking Aim at Red Flags”

ABA Journal: “Staying on Message” “Fed’l Judge Rules From Bench for ABA: ‘Red Flags’ Doesn’t Apply to Lawyers” “After ABA Wins ‘Red Flags’ Suit Over ID Theft Rules, Accountants Sue, Too”

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