CDT Urges Action Against Data Broker

The Center for Democracy and Technology filed a complaint June 30 with the Federal Trade Commission 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.