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When applying for a job or promotion, employers often conduct background checks, which may be referred to as investigative consumer reports. The Federal Trade Commission (FTC) mandates that employers provide a clear notice to candidates, detailing the use of this information for employment decisions and obtaining written consent. These rules apply particularly when a third-party service performs the checks. In California, applicants have additional rights for personal inquiries made by the company itself. Importantly, if an employer decides against hiring or promoting someone based on the background report, they are required to inform the applicant about this possibility.
