Employers Permissible Purpose for Using Background Checks

When employers engage a third party company to conduct employment background checks the first question that should be asked by the vendor, what is your permissible purpose for pulling these reports? The only logical answer is for employment purposes, however employers also feel that they can “double dip” if you will and use the reports…

K-Mart Settles Class Action Suit for $3 Million Dollars

You can now add K-Mart to the list of big businesses that have fined for violating the Fair Credit Reporting Act. The major retailer reached a settlement that will pay three million dollars in damages to more than 64,500 members of a class-action suit. The lawsuit alleged that K-Mart violated federal law by failing to…

HireRight Ordered to pay $2.6 Million for Multiple FCRA Violations

HireRight Solutions, an employment background screening company has been ordered to pay $2.6 million to settle Federal Trade Commission (FTC) charges that claimed HireRight.com violated the Fair Credit Reporting Act (FCRA) by failing to use reasonable procedures to assure the maximum possible accuracy of information contained in their reports. This marks the second largest civil…

Spokeo Charged with Violating FCRA

Spokeo, a data broker that gathers and sells information profiles on millions of consumers, will have to pay $800,000 fine to settle a Federal Trade Commission (FTC) charge. The Federal Trade Commission alleges that Spokeo violated the Fair Credit Reporting Act (FCRA) by marketing its services to recruiters, Human Resource departments, and Background Screening companies…