FTC seeks $5.8 million in penalties for San Diego background check companies

Ayana Archie

The"Remove" and"Flag as Inaccurate" buttons on the companies' websites also only removed disputed information for that specific user, while other customers could still view the disputed information, the FTC claims. The complaint alleges the companies also provided background reports to those without"permissible purposes," which the law permits for certain uses such as for employment purposes or other legitimate business reasons.

Along with a $5.8 million penalty, the FTC is seeking to require the companies to take measures that would prohibit misrepresentations of their reports' accuracy, among other provisions. The FTC's proposed order still requires a judge's approval before it can go into effect. Samuel Levine, director of the FTC's Bureau of Consumer Protection, said in a statement that"companies that compile personal information and sell background reports are on notice: Don't make false claims about the contents of your reports."

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FTC seeks $5.8M penalty against San Diego background check companiesIn a complaint filed Monday, the FTC says the companies behind the TruthFinder and Instant Checkmate services failed to take steps to ensure their background reports were accurate.
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