FTC Hits Seller Of Internet And Social Media Data

Earlier this week, the Federal Trade Commission ("FTC") announced that it entered into a settlement with Spokeo, Inc. for $800,000 over charges that it allegedly marketed consumer profiles to companies in the human resources, background screening, and recruiting industries without taking steps to protect consumers required under the Fair Credit Reporting Act ("FCRA"). Spokeo is a data broker that compiles and sells detailed information profiles on millions of consumers from its consumer facing people search engine and other sources, including social networks. It merges the data to create detailed personal profiles of consumers. The profiles contain such information as name, address, age range, and email address. They also might include hobbies, ethnicity, religion, participation on social networking sites, and photos. The FTC claims the company marketed by encouraging recruiters to "Explore Beyond the Resume." The FTC alleges that from 2008 until 2010, Spokeo marketed the profiles on a subscription basis to human resources professionals, job recruiters, and others as an employment screening tool. According to the FTC, Spokeo operated as a consumer reporting agency and violated the FCRA by failing to make sure...