Between 2008 and 2010, Spokeo actively marketed its consumer profiles on a subscription basis to HR professionals, recruiters and employment-screening services. The company ran advertisements to attract customers from these fields and posted misleading endorsements to make it appear as if other customers and businesses supported Spokeo's services, the FTC noted.

The FTC's investigation stems from a complaint filed in 2010 by the Center for Democracy and Technology (CDT). In its 24-page complaint, the CDT accused Spokeo of offering credit estimate and "wealth level" ratings on millions of American's based on inaccurate and incomplete data on consumers gathered from numerous online and offline sources.

Although Spokeo actively pitched its data and consumer profiles for employment decisions, the company did not offer consumers any of the protections offered under the FCRA. "Consumers have no access to the data underlying Spokeo's conclusions, are not informed of adverse determinations based on that data, and have no opportunity to learn who has accessed their profiles," the CDT noted in its complaint.

In a , Spokeo founder and president Harrison Tang noted that the company never intended to act as a consumer-reporting agency. "We have made changes to our site and our internal business practices in order to ensure we don't infringe upon the FCRA's important consumer protections," he wrote.

"We do not create our own content, we do not possess or have access to private financial information, and we do not offer consumer reports," Tang noted. "Our agreement with the FTC will allow for a continued open dialogue regarding our business practices."