FTC should probe payroll data deals by brokers like Equifax, rival says

FILE PHOTO: Signage is seen at the Federal Trade Commission headquarters in Washington, D.C., U.S., August 29, 2020. REUTERS/Andrew Kelly/File Photo

OAKLAND, Calif. (Reuters) - The U.S. Federal Trade Commission should investigate how data brokers including Equifax Inc and Experian Plc have amassed payroll records about most Americans, a small rival urged in a letter to the agency on Monday that was seen by Reuters.

For decades, companies such as Equifax have acquired employee work histories and compensation data from employers to help lenders, landlords, hiring managers and other customers perform background checks of individuals. But these big databases are vulnerable to theft and error, and workers are sometimes surprised their records are included, according to privacy activists.