A U.S. Appellate court decision March 4 further validates that physicians and attorneys are exempt from the Identity Theft Red Flags Rule. Back in December, President Obama signed legislation that exempted certain businesses, including physician practices, from the Red Flags Rule. The Red Flag Program Clarification Act of 2010 more narrowly defined the term ‘creditor’ so that, in effect, far fewer organizations must comply with the rule. Sens. John Thune, R-S.D., and Mark Begich, D-Alaska, introduced the measure, S 3987. The U.S. Court of Appeals for the District of Columbia, in ruling on a case brought by the American Bar Association that sought to exempt attorneys from the rule, pointed out that the new law made the case moot. As a result, the American Medical Association, which joined with others in filing a similar case seeking to exempt physicians, announced it had officially dropped that lawsuit.