SAN DIEGO — The Federal Trade Commission is seeking to require a group of San Diego-based companies that provide background information on individuals to pay $5.8 million for allegedly providing inaccurate background reports to their customers.
The FTC also alleges the companies' marketing was misleading, with customers receiving emails and notifications"that claimed that the subject of a background report had a criminal or arrest record, when the record was merely a traffic ticket." 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.
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