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Disclosure and Authorization Guidance for Background Checks – FTC Guidance

  May 3, 2017

The Federal Trade Commission (FTC) has published an educational piece for employers relating to disclosure and authorization forms. The article, “Background checks on prospective employees: Keep required disclosures simple" provides information for complying with laws pertaining to the background screening process.

A few key takeaways:

  • The FTC’s guidance outlines the requirements employers and organizations face under the Fair Credit Reporting Act (FCRA).
  • Importance of reviewing your disclosure and authorization forms to help ensure they are in line with the guidance.
  • Include legal counsel when reviewing your forms for FCRA compliance.

Remember, the Fair Credit Reporting Act (FCRA) was created to have the consumer’s welfare in mind and keep processes legal and fair. Compliance with the FCRA is required by law. Businesses and organizations not complying with the FCRA are increasing their liability and more importantly, not protecting consumer’s rights.

Click here to read the FTC’s educational information.

Comments (1)
June 5, 2017 at 10:27 am
Gavin Muirhead  says:
It's no wonder that employers around the world are giving emphasis on the background check while hiring new employees. Well, it should be; to get more qualified employees who don't have a tainted past. However, they must comply to the FCRA rules while performing pre-employment background check. Else, it may lead to some legal issues in future. If you're not doing the right kind of research and don't have reliable resource or proof of whatever written on the report is correct, it may land you in trouble. Rejected employees have the rights to claim and take action against you if you're practicing discrimination.

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