Skip to the main content.

2 min read

Negative Effects of False Advertising: Criminal Background Checks

Negative Effects of False Advertising: Criminal Background Checks

Here’s one fact we can all agree on: false and misleading advertising is illegal and unethical.

According to the Federal Trade Commission, types of false advertising include untruthful or misleading claims about company products or practices promoted on:

  • Television
  • Radio
  • Billboards
  • Newspapers
  • Magazines
  • Internet/online websites

But did you know false advertisement cases even include misleading background check claims?

Unfortunately, this type of false advertising is a very real threat to consumer safety. Not to mention, the action also goes against the U.S. Code.

In this article, we will explain:

  • Why an in-home repair organization is under fire for the promotion of misleading background check claims
  • Negative effects of false advertising on verified background checks
  • The simple solution to avoid falsely advertising background checks

Keep reading to learn why disclosure of criminal background checks for employment is important for public safety.

False Advertising Examples 2018: Criminal Background Check

In 2018, an in-home repair organization received major backfire for the promotion of misleading information on its website. 

According to California News Wire Services, the San Francisco District Attorney has filed a civil lawsuit against this prominent nationwide in-home repair organization for falsely advertising background checks performed on its service providers and contractors. 

But why?

#1 Reason for False Advertising Lawsuit 

Simply put, the complaint states that consumers can be misled to believe that all workers, service providers, and contractors who may enter their homes have undergone thorough background checks. 

However, this is not the case. The company at fault clearly states on their website that they perform background checks on the “principal/owner or relevant manager of all Certified Service Providers.” 

Nevertheless, in other statements and collateral, the company implies that everyone entering a consumer’s home has been properly background screened. 

This has caused the San Francisco District Attorney to flag the in-home repair organization for false advertising.

Negative Effects of False Advertising Background Checks

According to the San Francisco District Attorney, these statements are likely to deceive consumers into believing that the individuals coming to their homes have undergone a criminal background check.

As stated by District Attorney George Gascon, “We embrace innovative businesses, but consumers mustn't be misled.”

Here’s the bottom line…

“It is a matter of public safety that consumers are provided accurate information, especially when they are deciding whom to let into their homes,” Gascon added. 

And this is where businesses run into trouble. Even when companies do not advertise their background screen individuals, it is at the forefront of the consumer’s mind. 

In fact, according to a 2011 study completed by MindSpot Inc®, over 83% of consumers believe that when companies send service personnel into their homes, they have already undergone a criminal background screen.

So what is the solution to this problem?

Establish Verified Background Checks 

The solution is simple: require verified background checks

Before companies hire new contractors, they should require all individuals who plan to enter or access a consumer’s property to undergo contractor screening

Furthermore, if a company plans to advertise that its service performs background screens on employees or contractors, then it must ensure that all statements are in alignment with the company’s policy.

Protect Your Assets with PlusOne Solutions

It all boils down to this: false and misleading advertising is illegal and unethical. 

Not to mention, consumer safety is at risk! And no one wants their company to be at fault for a potentially avoidable mishap. 

That’s why PlusOne Solutions is here to help. As a Nationally Accredited Consumer Reporting Agency (CRA), PlusOne Solutions seeks to help organizations with large networks of independent contractors. PlusOne Solutions mitigates risks through:

  • Background screening
  • Drug testing
  • Compliance with the Fair Credit Reporting Act and EEOC guidelines
  • Document management
  • Insurance verification 
  • Badging and credentialing

Through a reliable and verified background check plan, companies can reduce employee, contractor, and vendor risk.

Contents are provided for information purposes only and should not be construed as legal advice. Users are reminded to seek legal counsel concerning their obligations and use of PlusOne Solutions' services.

What is in a Name? Millions of Dollars in Settlement Funds, Apparently!

What is in a Name? Millions of Dollars in Settlement Funds, Apparently!

Those with the last names Smith, Williams, Reilly, or even Clark know they are unique, even if their names are not.

Read More
TIN Matching To Reduce B Notices: How A TIN Matching Program Can Save You Money

TIN Matching To Reduce B Notices: How A TIN Matching Program Can Save You Money

When it comes to conducting background checks for employment, understanding the nuances of state laws is crucial for employers. One particularly...

Read More
Why Insurance Certificate Tracking Is Essential To Your Contractor Network

Why Insurance Certificate Tracking Is Essential To Your Contractor Network

Certificate of insurance (COI) management can be time-consuming and complicated. Outsourcing the functions and processes associated with insurance...

Read More