![]() ![]() Equifax has called the incident a “catalyst” that spurred a revamp of its security program. The letter says this “systemic lack of consent” could represent a violation of Section 5 of the FTC Act, which governs unfair and deceptive business practices.Ĭertree also raises concerns about the security of payroll records, given a “pattern” of data breaches at credit reporting firms.Įquifax suffered a data breach in 2017 that exposed the personal information of 147 million people and led to a settlement of up to $700 million to resolve federal and state investigations into the incident. Payroll records pose a privacy concern because workers have virtually no ability to opt out from the collection and monetization of their data, according to Certree’s letter to the FTC. The startups argue that giving consumers more control over their payroll records better protects their privacy and reduces the risk of inaccuracies in the data due to issues such as two consumers having similar names. Different types of income can be added to a single data set using Argyle’s account linkage method. “We’re that plumbing system,” Argyle CEO Shmulik Fishman said.Īrgyle got its start with the gig economy, where pay stubs don’t always neatly fit into a traditional income verification model. Argyle provides the infrastructure for the data-sharing, which is meant to be more secure than if an individual downloaded copies of their pay stubs and shared them over email. The vaults are password-protected and encrypted so Certree can’t seen what’s inside, she said.Īrgyle’s offering, meanwhile, lets consumers connect their payroll records to financial services apps, by logging into their payroll account. “We’re eliminating the need for those data brokers as middlemen,"said Certree CEO Pavan Kochar. Employers must partner with Certree for their workers to have access to its platform. The current verification system for US workers has dominated for decades because there hasn’t been a clear alternative to Equifax or Experian, Certree’s chief executive officer said in a September letter to the FTC.Ĭertree is pitching a new model that lets individuals use so-called vaults to hold copies of documents such as proof of employment or education, allowing them to share information with third parties as needed. Consumers are likely to be most concerned about their consent to payroll data collection, the accuracy of the information, and how it is used, she said. ![]() “Certain things are important to consumers regardless of who’s taking in this information,” said Melissa Baal Guidorizzi, a partner at Orrick Herrington & Sutcliffe LLP who previously worked in enforcement at the Consumer Financial Protection Bureau, or CFPB. ![]() A spokesperson for the FTC confirmed receipt of the letters and declined to comment on them. Data-sharing also tends to be structured in a way that stifles competition, the startups say.Īrgyle recently joined Certree in pressing the Federal Trade Commission to investigate how Equifax and Experian gather payroll data, with an eye toward potential anti-competitive practices or the breach of consumer data protections. These firms act as go-betweens, relying on their data-sharing relationships with employers and human resources software providers to collect the requested information.Įmployees may not be aware of how their payroll records are shared, raising concerns for the privacy and security of their information, according to newcomer employment data platforms Certree and Argyle. ![]() Rather than confirming such information directly with an employer, they often purchase the data from credit reporting firms like Equifax Inc. Payroll information is valuable to lenders, landlords, and potential employers, who use the data to verify a person’s income and employment history. A pair of startups is challenging top credit reporting firms that collect the payroll records of millions of Americans, and they’re urging federal regulators to investigate the incumbents’ influence on competition and consumer data privacy. ![]()
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