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Spokeo Settles with FTC for $800,000

PRIVACY LAW—U.S.

June 12, 2012

Data broker Spokeo has agreed to pay an $800,000 fine to settle Federal Trade Commission (FTC) charges that it marketed detailed profiles on millions of consumers to companies in the human resources, background screening and recruiting industries without taking steps required to protect consumers under the Fair Credit Reporting Act (FCRA). The settlement also bars Spokeo from future FCRA violations and from misrepresenting its endorsements or connections with endorsers. The consumer information Spokeo allegedly marketed to recruiters included names, addresses, age ranges and e-mail addresses. The settlement is the first FTC case addressing the sale of consumers' online data for employment screening purposes.
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