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.
