STATEMENT BY NEW YORK STATE BAR ASSOCIATION PRESIDENT
MICHAEL E. GETNICK
Commission Announcement on “Red Flags” Rule
We are pleased that the Federal Trade
Commission (FTC) has decided to delay for a 90-day period enforcement of
the “Red Flags” Rule. As the State Bar has noted
before, we believe that the imposition on attorneys of this rule, though
intended to address the very serious problem of identity theft, is both
unnecessary and beyond the intent of Congress.
As the majority of lawyers practice in
the solo or small firm setting, they are not engaged in the type of
commercial activity that is sought to be addressed by this rule.
Indeed, the FTC has been unable to provide one single incident of
identity theft arising from a law practice context. Moreover, such
a requirement would assuredly be at odds with the concept, backed by a
D.C. District Court’s ruling, that the regulation of the practice
of law is traditionally within the purview of the states as opposed to
the federal government.
I commend the American Bar Association
and the many state and local bar associations across the nation for
taking action on such a critical issue to the legal profession. We
remain committed to working with our Association partners, members of
Congress, and the FTC toward a resolution that will provide attorneys
with an exemption from the “Red Flags” Rule.
The 76,000-member New York State
Bar Association is the official statewide organization of lawyers in New
York and the largest voluntary state bar association in the nation.
Founded in 1876, State Bar programs and activities have continuously
served the public and improved the justice system for more than 130
NEW YORK STATE BAR ASSOCIATION, ONE ELK STREET, ALBANY, NY 12207 PH: (518) 463-3200 SECURE FX: (518) 463-5993