WASHINGTON (AP) — Federal regulators have warned 10 companies promising quick background checks that they might be violating the Fair Credit Reporting Act.
The Federal Trade Commission on Tuesday issued the warning letters to 10 businesses, including 4Nannies.com and USA People Search, after FTC staff posed as employers and creditors looking for information that could be used to deny a person a job or an apartment.
The law requires that companies providing information to potential employers, landlords, insurers and creditors follow certain rules. Otherwise, they must make clear to consumers that their information should be used for marketing or entertainment purposes only.
The sites 4Nannies.com and USA People Search could not be reached immediately for comment.