FTC Defense Lawyer on Recent Testimony Before Senate Banking Committee on FCRA
On July 12, 2018, the Federal Trade Commission testified before the Senate Banking, Housing and Urban Affairs Committee that enforcement of the Fair Credit Reporting Act remains a top priority. The Commission outlined the agency’s efforts to educate consumers and businesses about the law’s requirements.
The FCRA requires consumer reporting agencies to follow reasonable procedures to ensure they only provide consumer report information to those with a “permissible purpose” for receiving it. It also requires agencies to maintain reasonable procedures to ensure accuracy of information, and to allow consumers to dispute and correct information in consumer reports.
According to FTC defense lawyer Richard B. Newman, the FTC has brought more than 30 actions over the past 10 years to enforce the FCRA. At the hearing on credit bureaus and the FCRA, the Associate Director of the FTC’s Division of Privacy and Identity Protection noted the key role the FTC has played in the implementation, enforcement and interpretation of the FCRA.
The FTC continues to attempt to educate consumers and businesses on their rights under the FCRA, including publishing guidance for those who report information about consumers to consumer reporting agencies.
Importantly, the FTC outlined its efforts to protect consumer privacy and promote data security. The FTC has brought more than 60 regulatory enforcement actions against companies that allegedly engaged in unreasonable data security practices.
The FTC also creates and disseminates consumer education material to alert consumers about data security issues. It also provides guidance to businesses about how to protect the data in their care and understand what practices violate the laws the FTC enforces, including the Start with Security and Stick with Security initiatives, and the Protecting Personal Information: A Guide for Business.
Informational purposes only. Not legal advice. Always seek the advice of an attorney. Previous case results do not guarantee similar future result. Hinch Newman LLP | 40 Wall St., 35th Floor, New York, NY 10005 | (212) 756-8777.