The Fair Credit Reporting Act of 1970 governs the background checks that American employers buy from screening companies. Its definition of a consumer report includes information on a person’s “character, general reputation, personal characteristics, or mode of living.” An investigative report gathers it “through personal interviews with neighbors, friends, or associates.”
An employer must get written permission first. Before rejecting someone because of the report, the employer must give the applicant a copy of it.