Tag Archives: FTC

Federal Trade Commission Warns Data Brokers about Possible Fair Credit Reporting Act Violations

The Federal Trade Commission (FTC) has sent letters to ten data broker companies to warn them that their practices could violate the Fair Credit Reporting Act (FCRA). The letters were issued as part of a global privacy protection effort after a test-shopping operation by the FTC indicated the ten companies were willing to sell consumer information without following FCRA requirements. A news release from the FTC about the warning letters is available at http://www.ftc.gov/opa/2013/05/databroker.shtm. Continue reading

FTC Approves Final Order Settling Charges against Criminal Background Check Report Marketers

The Federal Trade Commission (FTC) has approved a final order settling charges that Filiquarian Publishing LLC, Choice Level LLC, and their CEO operated as a consumer reporting agency (CRA) that provided criminal background check reports to be used for employment decisions without taking consumer protection measures required by the Fair Credit Reporting Act (FCRA).  A press release from the FTC about the final order is available at http://www.ftc.gov/opa/2013/05/filiquarian.shtm. Continue reading

Databases Tracking Employee Thefts to Be Examined by FTC for Fair Credit Reporting Act Compliance

Large databases that track employee thefts and could prevent workers accused of theft in the past from finding new jobs in the retail industry will be examined by the Federal Trade Commission (FTC) for compliance with the Fair Credit Reporting Act (FCRA), according to a report from the New York Times. The article – ‘Retailers Track Employee Thefts in Vast Databases’ – is available on the Times website at http://www.nytimes.com/2013/04/03/business/retailers-use-databases-to-track-worker-thefts.html. Continue reading

Equal Employment for All Act Would Prohibit Employers from Using Credit Report Checks when Hiring

Congressman Steve Cohen (D-Tennessee-09) has introduced legislation in the U.S. House of Representatives – H.R. 645, the ‘Equal Employment for All Act’ – that would amend the Fair Credit Reporting Act (FCRA) to prohibit employers from using credit report checks and bankruptcy filings when hiring or making adverse employment decisions. Under H.R. 645, some exceptions allowing the use of credit reports would include jobs requiring security clearance, state or local government jobs, or certain individuals working in the financial industry. The full text of ‘the ‘Equal Employment for All Act’ is available at http://www.gpo.gov/fdsys/pkg/BILLS-113hr645ih/pdf/BILLS-113hr645ih.pdf. Continue reading

Identity Theft Tops Annual FTC List of National Consumer Complaints for 13th Consecutive Year

Identity theft in general – and tax- or wage-related fraud in particular – has once again topped the list of complaints received by the Federal Trade Commission (FTC) for the 13th consecutive year in the annual FTC Consumer Sentinel Network Data Book for January – December 2012. The report, which marks the first year the FTC received more than 2 million complaints overall, found that 369,132 complaints – or 18 percent –  were related to identity theft, with more than 43 percent of those complaints related to tax- or wage-related fraud. The FTC Consumer Sentinel Network Data Book for 2012 is available at http://www.ftc.gov/sentinel/reports/sentinel-annual-reports/sentinel-cy2012.pdf. Continue reading

FTC Study on Credit Report Accuracy Finds One in Five Consumers has Error on Their Credit Reports

A Federal Trade Commission (FTC) study of accuracy in the U.S. credit reporting industry has found that one in five consumers – an estimated 40 million Americans, according to a ‘60 Minutes’ report on the FTC study – had an error on at least one of their three major credit reports while five percent had significant errors on one of their credit reports that could result in less favorable terms for auto loans and insurance. The full text of the FTC report is available at http://www.ftc.gov/os/2013/02/130211factareport.pdf. Continue reading

Mobile Apps Marketers Offering Criminal Background Checks To Settle FTC Charges for Violating Fair Credit Reporting Act

In resolving the first Fair Credit Reporting Act (FCRA) case involving mobile “apps,” marketers of mobile applications that compiled and sold criminal record background check reports as job applicant screening tools have agreed to settle Federal Trade Commission (FTC) charges that they operated as consumer reporting agencies (CRAs) without taking consumer protection measures required by the FCRA.  The FTC’s settlement order, which prohibits the companies involved from future FCRA violations, is available at http://www.ftc.gov/os/caselist/1123195/130110filquarianagree.pdf. Continue reading

Background Screening Industry Focused on Accuracy after Stories of Background Checks Gone Wrong

A new focus on accuracy in the background screening industry has emerged after several reports about inaccurate background checks appeared in the news recently. The latest story is a blog on HuffingtonPost.com titled ‘5 Stories of Background Checks Gone Awry’ that describes how background checks used when people apply for jobs, open bank accounts, or rent or buy homes can sometimes be “just wrong.” The HuffingtonPost.com blog, which lists five specific incidences of when background checks contained bad information, is available at http://www.huffingtonpost.com/erin-steiner/5-stories-of-background-c_b_2427586.html. Continue reading

Top Ten Background Check Trends for 2013 Released by Employment Screening Resources

Nationwide accredited background check firm Employment Screening Resources (ESR) has released its Sixth Annual ‘ESR Top Ten Background Check Trends for 2013’ featuring emerging and influential trends in the background screening industry selected by ESR Founder and CEO Attorney Lester Rosen. For 2013, the focus on accuracy of background check report information and the greater scrutiny of the screening industry was chosen as the number one trend. The Sixth Annual ‘ESR Top Ten Background Check Trends for 2013’ is available at http://www.esrcheck.com/Top-Ten-Background-Check-Trends-for-2013.php. Continue reading