- On June 12, 2012, the FTC announced that Spokeo, Inc., an online data broker that compiles and sells detailed information profiles on millions of individuals, will pay $800,000 in order to settle charges that it sold consumer profiles to other companies without taking the steps required by the U.S. Fair Credit Reporting Act (FCRA) to protect consumers. This was the first FTC case to address the sale of Internet and social media data for the purpose of employment screening. The FTC alleged that Spokeo operated as a consumer reporting agency but failed to ensure that the information it sold would be used only for legal purposes. Spokeo claims that it has since “made changes to our site and our internal business practices in order to ensure we don’t infringe upon the FCRA’s important consumer protections.” More information regarding the FTC’s settlement with Spokeo is available here.
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Federal Trade Commission (FTC) and privacy regulation
- Arent Fox LLP
- Ross A. Buntrock , Alan G. Fishel , Stephanie A. Joyce and Stephen Thompson
- USA
- June 25 2012
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Nadia Martel
Senior Legal Counsel
Bombardier Recreational Products Inc
