CHICAGO – Four national organizations representing dentists, physicians and veterinarians have called on the Federal Trade Commission to exclude health professionals from controversial new regulations intended to combat identity theft.

Officials say the FTC’s interpretation of the so called "red flags rule" imposes an unjustified, unfunded mandate on health professionals for detecting and responding to identity theft.

A letter was sent to FTC Chairman Jon Leibowitz by leaders of the American Dental Association, American Medical Association, American Osteopathic Association and American Veterinary Medical Association.

“Congress did not intend the original red flags legislation to apply to small businesses, but rather it was intended to encourage large businesses like banks, credit firms and national retailers to implement best practices to protect customers’ from identity theft,” said ADA President Ronald Tankersley.

The organizations have asked the FTC to make it clear that the rule will not apply to their members, given the result of recent litigation brought by the American Bar Association against the FTC. In that case, the U.S. District Court for the District of Columbia ruled that lawyers should be excluded from the requirements imposed by the red flags rule.

The court decision follows wide criticism that the FTC’s overly broad interpretation of the Fair and Accurate Credit Transactions Act of 2003 (FACT) led the commission to create a rule that oversteps its authority.

“The court ruling sends a clear signal that the FTC needs to re-evaluate the broad application of the red flags rule,” said AMA President J. James Rohack, MD. “Our four organizations firmly believe that applying the rule to health professionals, but not to lawyers, would be unfair.”

In response to concerns, the FTC postponed the rule’s effective date to June 1, but it has not changed the position that the rule will apply to health professionals.

“Postponement of the rule’s effective date is inadequate,” said AOA President Larry A. Wickless, DO. “Our four organizations need a commitment from the FTC that it will not apply the red flags rules to health professionals if it is not applied to lawyers.”

“The burdens of complying with this rule outweigh the benefits,” said AVMA President Larry R. Corry. “The FTC’s interpretation of the FACT Act should be redefined to exclude health professionals.”