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July 2012, Vol. 48, No. 7

Ethics and Professionalism

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Spokeo settles FTC allegations that it illegally sold detailed consumer data to employers

Steven M. Sellers

In the first Federal Trade Commission enforcement action addressing “the sale of Internet and social media data in the employment screening context,” Spokeo, Inc., agreed to an $800,000 settlement for violating the Fair Credit Reporting Act when it sold detailed consumer information profiles to employers and recruiters. The settlement will not end litigation about Spokeo’s sale of consumer data: Cases are pending in the Ninth Circuit and the Northern District of California.

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