The Federal Trade Commission recently warned the marketers of six mobile applications that provide background screening that they may be violating the Fair Credit Reporting Act. According to the FTC, if the marketers have reason to believe the background reports they provide are being used for employment screening, housing, credit, or other similar purposes, they must comply with the Act.
The FTC says some of the apps include criminal record histories, which bear on an individual’s character and general reputation and are precisely the type of information that is typically used in employment and tenant screening.
“If you have reason to believe that your background reports are being used for employment or other FCRA purposes, you and your customers who are using your reports for such purposes must comply with the FCRA,” letters to the marketers say.
The FTC has made no determination whether the companies are violating the FCRA, but encourages them to review their apps and their policies and procedures to be sure they comply with the FCRA. For more information please visit www.ftc.gov/news.
