Where HireRight Solutions went wrong

Tulsa-based HireRight Solutions is a background screening company that thousands of employers use to check out current employees and people applying for jobs.

Metadata
Provider: 
FTCFTC
URL: 
https://www.ftc.gov/business-guidance/blog/2012/08/where-hireright-solutions-went-wronghttps://www.ftc.gov/business-guidance/blog/2012/08/where-hireright-solutions-went-wrong
Retrieved on: 
Saturday, December 3, 2022
Information
Tags: 
Character, FCRA, Interview, Exercise, Government, Fraud, Blog, Federal Trade Commission Act of 1914, The Nader Report on the Federal Trade Commission, Privacy, Consumer, Torpedo, Employment, Comment, Complaint, Credit, FTC, HireRight, Compliance, Policy, Record, Federal Trade Commission, Insurance, Property management, Online shopping, Tutoring, Mobile phone
Summary
Key Points: 
  • Tulsa-based HireRight Solutions is a background screening company that thousands of employers use to check out current employees and people applying for jobs.
  • When it comes to Fair Credit Reporting Act compliance, the FTC says HireRight Solutions got it wrong by not using reasonable procedures to ensure the accuracy of the information it was selling.
  • The upshot: a $2.6 million civil penalty, the second-largest ever in an FTC FCRA case.
  • The background screening reports that HireRight Solutions sells are consumer reports under the FCRA.
  • That's where the FTC says HireRight Solutions didnt get it right.
  • For example, the FTC alleges that HireRight Solutions had a big backlog because it didnt hire enough staff to respond to peoples concerns about inaccuracies.
  • The complaint charges that HireRight Solutions had a system in place for notifying people, but it was too clunky to be of much practical use.
  • In addition to the $2.6 million penalty, the stipulated order puts provisions in place to change how HireRight Solutions does business going forward.
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