On May 9, 2011, the Federal Trade Commission approved the Social Intelligence Corporation as a consumer reporting agency in compliance with the Fair Credit Reporting Act. The commission noted that Social Intelligence can now issue legal background checks “because it assembles or evaluates consumer report information that is furnished to third parties that use such information as a factor in establishing a consumer’s eligibility for employment.”
As part of the approval, the FTC required that Social Intelligence ensure maximum accuracy of social media information collected—and that the company is under “obligation to provide employees or applicants with notice of any adverse action taken on the basis of these reports.” While the FTC found that no further action was required, the commission said it might evaluate Social Intelligence’s operations in the future if public objections are raised.
