- Chief Compliance Officer and VP of Legal Affairs, Arrow Electronics
By 
Adrianne Appel2024-10-25T13:55:00
Businesses need to follow the consumer protection rules of the Fair Credit Reporting Act (FCRA) when engaging in employee surveillance, which includes background reports about employees produced by third parties using artificial intelligence, the Consumer Financial Protection Bureau (CFPB) said Thursday in new guidance.
The FCRA was originally passed by Congress in 1970 to protect consumers from unfair credit reports. Credit reports have been used by banks and lenders to assess an individual’s creditworthiness.
The agency’s new guidance makes clear that the CFPB is broadening the interpretation of the FCRA, and is applying–and enforcing–the tenets of the law on the electronic surveillance of employees and potential hires.
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