FTC Settles FCRA Charges Against Data Broker

FTC FCRA Consumer Reporting Privacy/Cyber Risk & Data Security

On June 12, the FTC announced that a data broker agreed to settle charges that it marketed and sold consumer profiles to companies engaged in human resources, background screening, and recruiting without taking steps to protect consumer information as required by FCRA. The FTC claimed that the data broker operated as a consumer reporting agency and violated FCRA when it failed to ensure that the information it compiled and sold would be used only for permissible purposes. The broker also allegedly failed to ensure that consumer information it sold was accurate and failed to inform buyers of their FCRA obligations. Among other things, the settlement requires the data broker to pay an $800,000 civil penalty and prohibits the firm from any future violations of FCRA.