HireRight to Pay $2.6 Million Penalty for Multiple Violations of the Fair Credit Reporting Act
HireRight charged by FTC and pays $2.6 million
FTC Charges HireRight Solutions Incorrectly Listed Criminal Convictions on Reports of Some Consumers An employment background screening company that provides consumer reports to companies nationwide will pay $2.6 million to settle Federal Trade Commission charges that it violated the Fair Credit Reporting Act by failing to use reasonable procedures to assure the maximum possible accuracy of information it provided, failing to give consumers copies of their reports, and failing to reinvestigate consumer disputes, as required by law.
The case against HireRight Solutions, Inc. represents the first time the FTC has charged an employment background screening firm with violating the FCRA, and is the second-largest civil penalty that the FTC has obtained under the Act. Only the 2006 $10 million civil penalty against consumer data broker ChoicePoint, Inc. was larger. The Department of Justice filed the complaint and proposed order against HireRight Solutions on the FTC’s behalf. Under the settlement, the company also is barred from continuing its alleged illegal practices.
Tags: background checks, employment law, employment screening
Background Checks, CA Employment Law, Employment Law, Employment Screening, Human Resources | tlawson007 August 9, 2012
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