Data Brokers Warned by FTC of Possible FCRA Violations

The Federal Trade Commission (“FTC”) has turned up the heat on the data brokerage industry. The agency announced in a May 7 press release that it has sent letters to ten data broker companies warning that their practices could violate the Fair Credit Reporting Act (“FCRA”). The action by the Commission followed a sting by FTC staff members who posed as individuals or businesses seeking information on consumers related to their creditworthiness, eligibility for insurance or suitability for employment. "The letters are not an official notice by the Commission that any of the named companies is subject to the requirements of the FCRA, nor do the letters lay out any formal complaints against the companies," the FTC said. "Instead, they serve to remind the companies to evaluate their practices to determine whether they are consumer reporting agencies, and if so, how to comply with that law." The ten companies receiving the warning letters from the FTC include: