On October 8, 2009, Rep. John H. Adler (D-N.J.) introduced legislation to exempt certain professional businesses from the Federal Trade Commission's (FTC) Red Flags Rule (H.R. 3763). The Red Flags Rule, enforcement of which becomes effective November 1, 2009 (see our July 29, 2009, Executive Alert ), requires many businesses to implement and maintain a written identity theft prevention program. The recently proposed law would exclude from the definition of "creditor" any healthcare practice, accounting practice or legal practice with 20 or fewer employees. In addition, the FTC would be required to issue rules allowing any business to apply for an exemption from the Red Flags Rule based on certain factors establishing the limited scope of the business, such as personal knowledge of each customer and transactions conducted within the customer's residence.