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Lawsuit Dropped After Court Ruling Clarifies the Red Flags Rule

Tuesday, March 08, 2011

On March 7, 2011, the American Medical Association (AMA) dropped its lawsuit against the Federal Trade Commission (FTC) regarding the Red Flags Rule. AMA’s decision followed a ruling by the United States Court of Appeals for the District of Columbia Circuit that the Red Flag Program Clarification Act of 2010 modified the definition of “creditor” to include an “explicit advancement of funds,” and thus precluded application of the Red Flags Rule to attorneys. Physicians, by implication, are also generally exempted because the same rationale for applying the rules to attorneys was used in regards to physicians. Unless the FTC issues new regulations, the Red Flags Rule will not be applied to physicians. The lawsuit was filed by the AMA, the American Osteopathic Association (AOA) and the Medical Society of the District of Columbia, and joined by 26 national medical specialty societies, including ASA.

Please click on the following links for additional information:

Court's Opinion 

AMA Press Release 

Information on FTC Red Flags Rule  


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