Medical Groups Challenge June 1 Application of FTC Red Flags Rule

Earlier today, the American Medical Association, American Osteopathic Association and the Medical Society of the District of Columbia filed a complaint that seeks to block the application of the Federal Trade Commission’s Red Flags Rule to their members.

According to its press release, the AMA filed this suit because it unfairly treats physician practices like “banks, credit card companies and mortgage lenders,” according to AMA President-elect Cecil B. Wilson, M.D. He added, “The extensive bureaucratic burden of complying with the red flags rule outweighs any benefit to the public.”

Given the impending June 1 deadline, it is somewhat curious that these groups have not sought an injunction to stop the FTC from applying the rule to their members (as it is unlikely their complaint will be resolved by June 1). It would appear that these groups are going to let the American Bar Association and its earlier challenge do the heavy lifting here.

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