Antitrust Law Daily Wrap Up, CONSUMER PROTECTION NEWS: FTC Warns Operators of Tenant History Websites of Their Potential Obligations Under Fair Credit Reporting Act, (Apr 3, 2013)
Organizations Mentioned:123 Rent Inc. | M & R Rental Properties | National Tenant Network | Tenancy Bureau Inc. | The BlueChip Group LLC | The Landlord Protection Agency
By Tobias J. Gillett, J.D., LL.M.
The FTC has sent a warning letter to the operators of six websites that provide landlords with consumer rental histories, notifying them that they may be subject to the provisions of the Fair Credit Reporting Act (FCRA).
According to the letter, if the operators assemble or evaluate consumers’ rental histories and provide that information to landlords, then they are credit reporting agencies subject to the FCRA. The FCRA would require the operators to make reasonable efforts to ensure that the landlords requesting consumers’ information had legitimate reasons for their requests. They must also take steps to confirm the accuracy of their information, and provide consumers with opportunities to contest information they consider incorrect.
The operators must inform the landlords that they should tell consumers they deny based on the operators’ information of the reason for their denial, of their right to receive a free copy of their reports, and of their right to dispute information in the reports. The operators must also inform their sources of information of their obligations to provide accurate information, to investigate consumer disputes, and to correct any information found to be inaccurate.
The letter notes that the FTC has not yet reviewed the operators’ individual business practices, but that the FTC could seek an injunction and monetary penalties of $3,500 per violation, and that they may be subject to other federal and state laws enforced by other agencies. Recipients of the letters include The BlueChip Group LLC, M & R Rental Properties, The Landlord Protection Agency, National Tenant Network, 123 Rent Inc., and Tenancy Bureau Inc.
Companies: The BlueChip Group LLC; M & R Rental Properties; The Landlord Protection Agency; National Tenant Network; 123 Rent Inc.; Tenancy Bureau Inc.
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