Tag Archives: federal trade commission

FCRA Applies to Background Checks Too

By: Sheila Raftery Wiggins

The Fair Credit Reporting Act imposes many requirements, including on background checks of prospective employees. An employer may not obtain a background check unless: (1) a clear and conspicuous disclosure is made in writing before the report is caused to be procured, (2) the document consists solely of the disclosure (do not add extraneous information!) and (3) the person authorizes the check in writing. Failure to comply can result in an enforcement action by the Federal Trade Commission, other government actions or private lawsuits.  Keep it simple.

Sheila Raftery Wiggins, of the Newark office, handles matters involving complex commercial disputes, insurance defense, coverage disputes, financial fraud, and attorney ethics.

Puffery Vs. False Claims: The FTC Is Watching

By: Sheila Raftery Wiggins

LESSON: Avoid false endorsements by the government, especially when the government does not rank your business industry. The FTC reprimanded a fitness franchisor for falsely stating that the FTC endorses or has ranked the fitness franchise. A false claim may give cause to: (1) the filing of a complaint with the Federal Trade Commission—the filing is free, (2) a lawsuit and (3) decreased reputation. Comments to this post are welcome.

Sheila Raftery Wiggins, of the Newark office, handles matters involving complex commercial disputes, insurance defense, coverage disputes, financial fraud, and attorney ethics.