Judge: FTC Cannot Make Lawyers Comply With Identity Theft Laws

Thursday, October 29, 2009

The Federal Trade Commission cannot force practicing lawyers to comply with new regulations aimed at curbing identity theft, a federal judge ruled today at the U.S. District Court for the District of Columbia.

The decision offers a reprieve to law firms across the country, which faced a deadline this weekend to put in place programs to meet so-called “Red Flags Rule” requirements. The rules would have forced firms to verify the identities of potential clients.

The American Bar Association, represented by a Proskauer Rose team led by partner Steven Krane, argued that the rules would impose a serious burden on law firms, and sought an injunction and declaratory judgment finding that lawyers were not covered by the rule. The FTC contended that lawyers should be covered, because many of their billing practices, such as charging clients on a monthly basis rather than up front, made them “creditors.”

Read more on BLT: The Blog of Legal Times.

Original Source: http://www.databreaches.net/?p=8045
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john walker Re MetaData: This is a correct ruling in my opinion to provide MetaData. For any Discovery of artifacts to be absolute, where the requester feels information may have been subject to change, or where it may reveal any other such related subliminal artifacts relating to the case, or object, it is should be considered a legal entitlement to have access to such data.

Of course the obtuse to this is, organisations also leak much data through their information assets as subliminal MetaData content – and so the other side of the sword is they should practice secure handling pre distribution. So if such an organisation does have such process and procedures in place, then they should be well documented and promulgated in order to avoid being accused of wilful destruction of related discovery of such information.