“This is the first Commission case to address the sale of internet and social media data in the employment screening context,” says the FTC.
Spokeo is effectively a people search engine. It searches the internet and especially the social networks to discover and then compile ‘people profiles’. These it then sells primarily to human resource departments and recruitment agencies. According to the FTC, however, it operated unfairly. More specifically, it alleged that Spokeo violated the FCRA by failing to make sure that the information it sold would be used only for legally permissible purposes; failing to ensure the information was accurate; and failing to tell its users about their obligation under the FCRA – including the requirement to notify consumers if the user took an adverse action against the consumer based on information contained in the consumer report.
But the FTC doesn’t address the issues that most concern many users. “People have been voicing complaints about ‘Spookeo’ for years (the company’s been around since 2007), about the invasiveness of the profiles, the inaccuracy of the information contained therein, and the failure of the site’s opt-out process,” writes Forbes. That ‘invasiveness’ will likely continue – and the inaccuracy, if it includes people’s social network descriptions – since the FTC has only been able tackle Spokeo in relation to the Fair Credit Reporting Act. That is, says Forbes, “not making sure the info in its reports was accurate and not notifying you if an employer decided not to hire you based on what it found in the Spokeo report.” The core problem for most people – “cyberstalking” – suggests Forbes, remains.
“Congress has flirted with the idea of creating FCRA-type requirements for all data brokers and profilers — requiring them to take pains to ensure the accuracy of their profiles, let you fix inaccuracies, etc. — but as of now, that flirtation hasn’t turned into anything very steamy,” adds Forbes.
Meanwhile, Harrison Tang, the founder and president of Spokeo, has effectively said it will be business, basically, as usual. “Our product enables users to satisfy the basic human desire to connect with others. We are committed to empowering our users through continued innovation in people search.”
Accepting an FTC settlement is not, it should be stressed, an admission of any guilt – it is merely an expensive and mutually agreed method of making the issue go away.