The suit arose after four plaintiffs alleged that potential employers withdrew the plaintiffs from job consideration after connecting with them on LinkedIn. One plaintiff in particular claimed that an employer rescinded a job offer after reviewing her references without her knowledge through an online feature provided by the site.
The plaintiffs argued that LinkedIn should be bound by the Fair Credit Reporting Act as it collects and distributes consumer information to third parties and affords potential employers the opportunity to review applicants’ character, reputation and other “personal characteristics” – all attributes of what the plaintiffs considered to be a consumer reporting agency – without their knowledge.
Ultimately, Judge Paul S. Grewal ruled that since LinkedIn users, including the plaintiffs, knowingly and willingly provided their information to the site with the intent of it being published online, LinkedIn could not be a considered a consumer reporting agency, thus not making it bound the FCRA.
Although LinkedIn was granted motion to dismiss the lawsuit, Judge Grewal stated that despite the plaintiffs’ interpretation of the FCRA being too broad, their arguments could be revised and an amended complaint could be filed no later than May 19.
Source: Law360, 4/16/2015
Posted: May 7, 2015