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Background screening apps under fire from FTC

Posted on February 8th, 2012 Read time: 1 minutes

Before an HR outsourcing firm sends a prospect to a job, it's recommended that it perform a background check to ensure the candidate meets the job's standards and will reflect positively on the staffing agency.

However, if those checks are being performed by any number of mobile screening apps, it's possible that they're violating the Fair Credit Reporting Act (FCRA).

The Federal Trade Commission recently issued a release stating that warning letters have been sent out to six mobile screening apps in an attempt to make sure they're compliant. Companies that received letters include those that market apps for police records, criminal records searches and people locators.

"If you have reason to believe that your background reports are being used for employment or other FCRA purposes, you and your customers who are using your reports for such purposes must comply with the FCRA," the letter stated.

According to Network World, companies that fail to comply are subject to fines of up to $3,500 per violation.

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