FTC WARNS DATA BROKER OPERATIONS OF POSSIBLE PRIVACY VIOLATIONS
Category : News & Announcements
The Federal Trade Commission sent letters to ten data broker companies warning that their practices could violate the Fair Credit Reporting Act (FCRA) after a test-shopping operation by the FTC indicated the companies were willing to sell consumer information without abiding by FCRA requirements.
The test-shopping operation was part of a worldwide privacy protection effort. FTC staff members posed as individuals or representatives of companies seeking information about consumers to make decisions related to their creditworthiness, eligibility for insurance or suitability for employment.
The ten companies receiving the warning letters from the FTC include:
-Two companies that appeared to offer “pre-screened” lists of consumers for use in making firm offers of credit;
-Two companies that appeared to offer consumer information for use in making insurance decisions; and
-Six companies that appeared to offer consumer information for employment purposes.
Prepared by Montserrat Miller, Arnall Golden Gregory LLP and NAPBS Washington Counsel.