Spokeo Settles FTC Charges for $800K

Spokeo Inc. will pay $800,000 to settle charges from the Federal Trade Commission (FTC) that accused the data broker of marketing detailed profiles of millions of consumers to employers and recruiters without taking the steps to protect them under the Fair Credit Reporting Act (FCRA).

The FTC claims that Spokeo ran as a consumer reporting agency and violated the FCRA by failing to make sure that the information it sold would be used solely for legal purposes. It also claims that the company failed to make certain the information was accurate and failed to inform users of its consumer reports about their obligations under the FCRA.

The agency further alleges that Spokeo deceived the public by posting promotions of its service on blogs and websites it claimed were made independently when they were really created by its employees.

This is the first FTC case to address the sale of social media and Internet data during the employment screening process, according to a press release by the agency.

If you or a loved one has been wronged by consumer fraud, contact Sokolove Law for a free legal consultation and to find out if a consumer fraud lawyer may be able to help you. For legal help, call (800) 581-6358.

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