Employers often rely on background check companies to provide the accurate information needed to make critical hiring decisions. So what happens when the employment screening services you’re paying for can’t be trusted?
Last week Spokeo, an online data broker, agreed to pay an $800,000 fine to the Federal Communications Commission to settle charges it sold inaccurate information about job applicants and violated consumer protection laws. The FTC charged the broker with marketing profile information to human resource departments for background screenings on prospective employees. According to the complaint, Spokeo provided the information without first taking steps to ensure the information was accurate and without adhering to consumer protections provided by the Fair Credit Reporting Act.
Under the Fair Credit Reporting Act, credit reporting agencies and other entities that broker certain information about consumers must make an effort to provide fair and accurate information and give people an opportunity to correct inaccurate information about themselves. The data brokers also are supposed to put limits on who can access the information.
Make sure the company you have entrusted to perform employment screening services on your prospective employees is following the law and giving you accurate information. Search until you find a reputable company with no judgments against them. The future of your business depends on it!
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