The FTC has been planning for some time to implement the so-called "Red Flags Rule," which will require covered businesses to put in place certain safeguards against the theft of their customers' identities. The underlying legislation, and therefore the FTC rules, mandate that "creditors" be subject to the rules.
According to Legal Times, the FTC's position is that it has no choice but to include lawyers within the scope of the rule, and that only Congress could exempt them.
The ABA also expressed concern that regulation of attorneys has always been largely a matter under state control, and that increased federal presence in this area should be avoided. It does not appear that this contention is part of the lawsuit, however.
- ABA Files Suit Against FTC Over Applying Red Flags Rule to Lawyers (Blog of Legal Times)
- Fighting Fraud With the Red Flags Rule (FTC.gov)