Blacklisting: Why It’s Illegal & How To Avoid It | Eddy (2024)

FAQs

Why is blacklisting illegal? ›

Legal Compliance

Don't do it. Employers and recruiters who engage in blacklisting potentially risk legal action around defamation, separation agreement violations and/or noncompete agreement violations. Legal action can be considered both criminal and civil in nature.

A blacklist targets people or entities that are seen as disruptive or undesirable. Blacklists aim to isolate those listed and prevent them from doing business effectively. Historical blacklists have targeted union organizers and alleged communist sympathizers.

Being placed on a blacklist entails including individuals or organisations regarded as untrustworthy or a security risk due to past actions or affiliations. It typically refers to perceived credit concerns or improper management of funds.

Blacklists became particularly prominent in the industries investigated by the House Un-American Activities Committee (HUAC) for possible links to the Communist Party of the United States, most notably Hollywood film making. The House committee was seeking to purge the country of any communist influences.

They might find it hard to get credit, which can slow down their growth. There's also the risk of damaging their reputation if they work with blacklisted suppliers, and this could even lead to legal problems or the business having to shut down.

Blacklisting is the action of a group or authority compiling a blacklist of people, countries or other entities to be avoided or distrusted as being deemed unacceptable to those making the list; if people are on a blacklist, then they are considered to have done something wrong, or they are considered to be ...

Credit providers, such as banks and financial institutions, use credit bureaus to assess the creditworthiness of individuals or businesses. If someone has a history of late payments or defaults, they are likely to be blacklisted, making it difficult for them to obtain credit or loans in the future.

If you fail to pay outstanding debts, credit bureaus will add your name to a blacklist that will make it difficult for you to obtain loans in the future. Paying off your debt will remove your name from the blacklist.

What kind of people were blacklisted? ›

Professionals were blacklisted based on their membership in, alleged membership in, or sympathy with the Communist Party USA, or on the basis of their refusal to assist Congressional investigations into the party's activities.

A business that is either a credit provider or prescribed person must give at least 20 business days-notice to the consumer of their intention to submit adverse consumer information, which includes classifications such as “slow-paying”, “default” or “not-contactable”.

Blacklists offer several benefits in cybersecurity, such as proactive threat prevention, user access management, and cost-effectiveness. By blocking known malicious entities, they help protect systems and networks from potential harm.

: a list of persons who are disapproved of or are to be punished or boycotted.

Modern-day blacklisting

Today, blacklisting can still occur in various forms. Companies may share information about undesirable employees or applicants, effectively creating a modern blacklist. Despite legal restrictions in many countries, blacklisting remains a practice that can significantly impact careers and lives.

However, for some time now, there has been no such thing as being blacklisted in South Africa. This is because credit bureaus store both negative and positive information regarding your credit profile/ credit history. The term "blacklisting" can be misleading.

Some institutions may outright refuse to open a new account, while others may provide limited services. Being blacklisted can have serious repercussions for an individual. Their capacity to obtain credit, acquire employment, or even rent a property may be impacted on a personal and financial level.

Their identities have been erased. They must be avoided and treated as nonexistent. In practice, blacklisting is an economic sanction designed to prevent the individuals on the list from profiting from doing business in the community.