CDT Urges Action Against Data Broker
June 30, 2010
| 2:49 PM
The Center for Democracy and Technology filed a complaint Wednesday with the FTC against an online data aggregator and broker that the group claims has engaged in unfair and deceptive practices.
The complaint alleges that Spokeo Inc. has violated the Fair Credit Reporting Act and engaged in unfair and deceptive business practices.
Spokeo advertises itself as a "search engine specialized in organizing people-related information from phone books, social networks, marketing lists, business sites, and other public sources." By searching for an individual's name, information about his or her address, interests, occupation, "wealth level" and "credit estimate," among other items, appear.
CDT claims that Spokeo provides a consumer report without the protections required by the FCRA. CDT cites missing legal protections, such as limitations on who can access the personal report and making individuals aware of adverse actions that can be taken as a result of information obtained in the report.
CDT also claims that Spokeo's data is not reliable and that it makes money by getting people to sign up for more in-depth reports featuring personal details such as estimated income and investments -- information it may not have, according to CDT.
"Spokeo's service is particularly troubling as much of the information is inaccurate or misleading," Justin Brookman, a senior resident fellow at CDT said in a statement. "And the site is marketed to employers and other decision makers who could rely on the advertised credit, wealth and lifestyle data to make negative judgments about consumers without their awareness."
Spokeo did not respond to a request for comment.
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