[Federal Register Volume 59, Number 54 (Monday, March 21, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-6538]
[[Page Unknown]]
[Federal Register: March 21, 1994]
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FEDERAL TRADE COMMISSION
[Dkt. 9258]
W.D.I.A. Corporation, et al.; Proposed Consent Agreement With
Analysis To Aid Public Comment
AGENCY: Federal Trade Commission.
ACTION: Proposed consent agreement.
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SUMMARY: In settlement of alleged violations of federal law prohibiting
unfair acts and practices and unfair methods of competition, this
consent agreement, accepted subject to final Commission approval, would
prohibit, among other things, an Ohio based information corporation and
two of its officers from furnishing any consumer report for any
purposes not permitted under the Fair Credit Reporting Act, and would
require the respondents to take certain steps to ensure subscribers
have permissible purposes for accessing consumer reports in the future.
In addition, the respondents would be required to maintain a toll-free
telephone number available to consumers who have questions regarding
the purpose for which a consumer report on them was furnished.
DATES: Comments must be received on or before May 20, 1994.
ADDRESSES: Comments should be directed to: FTC/Office of the Secretary,
room 159, 6th St. and Pa. Ave., NW., Washington, DC 20580.
FOR FURTHER INFORMATION CONTACT: Ronald Isaac or David Grimes, Jr.,
FTC/S-4429, Washington, DC 20580. (202) 326-3231 or 326-3171.
SUPPLEMENTARY INFORMATION: Pursuant to section 6(f) of the Federal
Trade Commission Act, 38 Stat. 721, 15 U.S.C. 46 and Sec. 3.25(f) of
the Commission's Rules of Practice (16 CFR 3.25(f)), notice is hereby
given that the following consent agreement containing a consent order
to cease and desist, having been field with and accepted, subject to
final approval, by the Commission, has been placed on the public record
for a period of sixty (60) days. Public comment is invited. Such
comments or views will be considered by the Commission and will be
available for inspection and copying at its principal office in
accordance with Sec. 4.9(b)(6)(ii) of the Commission's Rules of
Practice (16 CFR 4.9(b)(6)(ii)).
W.D.I.A. Corporation, a corporation, and Mark W. Hanna, and
Janice L. Campanello, individually and as officers of said
corporation
Agreement Containing Consent Order To Cease and Desist
[Docket No. 9258]
The agreement herein, by and between W.D.I.A. Corporation, a
corporation, by its duly authorized officer, and Mark W. Hanna and
Janice L. Campanello, individually and as officers of said corporation,
hereinafter sometimes referred to as respondents, and their attorney,
and counsel for the Federal Trade Commission, is entered into in
accordance with the Commission's Rule governing consent order
procedures. In accordance therewith the parties hereby agree that:
1. Respondent W.D.I.A. Corporation, is a corporation organized,
existing, and doing business under and by virtue of the laws of the
State of Ohio, with its office and principal place of business located
at 7721 Hamilton Avenue, in the City of Cincinnati, State of Ohio
45321.
Respondents Mark W. Hanna and Janice L. Campanello are officers of
said corporation. They formulate, direct and control the policies, acts
and practices of said corporation, and their business address is the
same as that of said corporation.
2. Respondents have been served with a copy of the complaint issued
by the Federal Trade Commission charging them with violations of
sections 604, 607(a), and 613 of the Fair Credit Reporting Act and
section 5(a) of the Federal Trade Commission Act, and have filed
answers to said complaint denying said charges.
3. Respondents admit all the jurisdictional facts set forth in the
Commission's complaint in this proceeding.
4. Respondents waive:
(a) Any further procedural steps;
(b) The requirement that the Commission's decision contain a
statement of findings of fact and conclusions of the law;
(c) All rights to seek judicial review or otherwise to challenge or
contest the validity of the order entered pursuant to this agreement;
and
(d) any claim under the Equal Access to Justice Act.
5. This agreement shall not become a part of the public record of
the proceeding unless and until it is accepted by the Commission. If
the agreement is accepted by the Commission it will be placed on the
public record for a period of sixty (60) days and information in
respect thereto publicly released. The Commission thereafter may either
withdraw its acceptance of this agreement and so notify the
respondents, in which event it will take such action as it may consider
appropriate, or issue and serve its decision, in disposition of the
proceeding.
6. This agreement is for settlement purposes only and does not
constitute an admission by respondents that the law has been violated
as alleged in the draft of complaint here attached, or that the facts
are alleged in the draft complaint, other than jurisdictional facts,
are true.
7. This agreement contemplates that, if it is accepted by the
Commission, and if such acceptance is not subsequently withdrawn by the
Commission pursuant to the provisions of Sec. 3.25(f) of the
Commission's Rules, the Commission may without further notice to
respondents, (1) issue its decision containing the following order to
cease and desist in disposition of the proceeding, and (2) make
information public in respect thereto. When so entered, the order to
cease and desist shall have the same force and effect and may be
altered, modified or set aside in the same manner and within the same
time provided by statute for other orders. The order shall become final
upon service. Delivery by the U.S. Postal Service of the decision
containing the agreed-to order to respondents' address as stated in
this agreement shall constitute service. Respondents waive any right
they might have to any other manner of service. The complaint may be
used in construing the terms of the order, and no agreement,
understanding, representation, or interpretation not contained in the
order or in the agreement may be used to vary or to contradict the
terms of the order.
8. Respondents have read the complaint and the order contemplated
hereby. They understand that once the order has been issued, they will
be required to file one or more compliance reports showing that they
have fully complied with the order. Respondents further understand that
they may be liable for civil penalties in the amount provided by law
for each violation of the order after it becomes final.
Order
For the purpose of this Order, the following definitions apply:
``Person,'' ``consumer,'' ``consumer report,'' ``consumer reporting
agency,'' and ``employment purposes'' are defined as set forth in
section 603(b), (c), (d), (f), and (h), respectively, of the Fair
Credit Reporting Act (``FCRA''), 15 U.S.C. 1681a(b), 1681a(c), 1681(d),
1681a(f), and 1681a(h);
``Subscriber'' means any person who is approved for or obtains a
consumer report from respondents;
``Mixed-use subscriber'' means a subscriber who in the ordinary
course of business typically has both permissible and impermissible
purposes for ordering consumer reports; and
``Permissible purpose'' means any of the purposes listed in section
604 of the FCRA, 15 U.S.C. 1681b, or as it might be amended in the
future, for which a consumer reporting agency may lawfully furnish a
consumer report.
I
It is ordered that respondents, W.D.I.A. Corporation, a
corporation, its successors and assigns, and its officers, and Mark W.
Hanna and Janice L. Campanello, individually and as officers of said
corporation, and respondents' agents, representatives, and employees,
directly or through any corporation, subsidiary, division, or other
device, in connection with the furnishing of any consumer report, do
forthwith cease and desist from:
1. Furnishing any consumer report under any circumstances not
permitted by Section 604 of the FCRA.
2. Failing to maintain reasonable procedures designed to limit the
furnishing of consumer reports to the purposes listed under section 604
of the FCRA, as required by section 607(a) of the FCRA. Such procedures
shall include but not be limited to respondents doing or continuing to
do the following:
a. With respect to prospective subscribers, before furnishing a
consumer report to any such subscriber, and with respect to current
mixed-use subscribers, no later than six months after the date of this
Order: (i) Obtaining from each subscriber an initial written
certification stating the nature of the subscriber's business and all
purposes for which the subscriber plans to obtain consumer reports from
respondents. Each certification under this provision must be dated and
signed, must bear the printed or typed name of the person signing it,
and must state that the person signing it has direct knowledge of the
facts certified and supervisory responsibility for obtaining consumer
reports from respondents.
(ii) Determining, based on the information in the subscriber's
written certification, and any other factors of which respondents are
aware or, under the circumstances, should reasonably ascertain, that
each subscriber has a permissible purpose under section 604 for the
types of reports the subscriber plans to obtain. Respondents shall
create and maintain a record of the basis for this determination.
(iii) Verifying (1) the business identity of the subscriber; (2)
that the subscriber is engaged in the business certified and has a
permissible purpose for obtaining consumer reports; and (3) with
respect to prospective subscribers, that the subscriber maintains
reasonable procedures designed to prevent access to consumer reports by
unauthorized persons. Respondents shall conduct an on-site visual
inspection of the business premises of each subscriber that respondents
have not otherwise verified (e.g., through a previous on-site visual
inspection of the business premises or through business directories,
state or local regulatory authorities, or other reliable sources) to be
a legitimate business having a ``permissible purpose'' for the
information reported.
(iv) Providing each subscriber a summary of the permissible
purposes for obtaining consumer reports under section 604 of the FCRA
that is substantially identical to the summary attached to this Order
as exhibit A.
(v) Informing each subscriber in writing that the FCRA imposes
criminal penalties up to $5,000 and a year in prison against anyone who
knowingly and willfully obtains information on a consumer from a
consumer reporting agency under false pretenses.
b. With respect to both current and prospective subscribers: (1)
Requiring, any time a subscriber requests a consumer report for
employment purposes pursuant to section 604(3)(B) of the FCRA, that the
subscriber identify and certify that purpose, unless the subscriber has
previously certified that purpose to respondents as the only purpose
for which it requests consumer reports.
(ii) Requiring, any time a subscriber requests a consumer report
for a ``legitimate business need'' pursuant to section 604(3)(E) of the
FCRA, that the subscriber identify and certify that business need. Such
identification must be made in specific terms. Provided however, that a
landlord requesting a consumer report in connection with rental of an
apartment need not certify each request for a consumer report if the
landlord has previously certified that it will obtain consumer reports
solely for that purpose.
(iii) Requiring each mixed-use subscriber to identify and certify
the applicable purpose(s) each time it requests a consumer report. For
example, to identify the specific credit purpose for requesting a
report under section 604(3)(A) of the FCRA, it would suffice for an
attorney subscriber collecting a debt for a client to specify that as
his or her purpose.
(iv) Disclosing the following message, or one substantially
identical to it, on the computer screen each time a subscriber
transmits requests by computer for consumer reports: ``The Federal Fair
Credit Reporting Act imposes criminal penalties up to $5,000 and a year
in prison against anyone who knowingly and willfully obtains
information on a consumer from a consumer reporting agency under false
pretenses.''
(v) Verifying that each mixed-use subscriber is using consumer
reports solely for permissible purposes by sending a letter by first
class mail, postage prepaid, to each consumer on whom a consumer report
is furnished to a mixed-use subscriber, no later than three (3)
business days after furnishing the consumer report. Respondents shall
send the letter to the consumer's current address in an envelope
bearing respondents' company name and its return mailing address, and
stating ``PLEASE FORWARD''. The letter shall disclosure the following
information in a form substantially similar to exhibit B: (1) That
respondents have furnished a consumer report on the consumer to the
person identified by the name and address stated in the letter;
(2) The identity of the end user of the report (i.e., the person on
whose behalf the subscriber obtained the report) if known and if
different from the person to whom respondents furnished the consumer
report;
(3) The purpose identified for requesting the consumer report; and
(4) That should the consumer have questions concerning the purpose
for which the consumer report was furnished, the consumer may call
respondents at the toll-free (``800'') telephone number stated in the
letter or may write to respondents at the address stated in the letter.
(vi) Maintaining a toll-free telephone number available for
consumers to call at least six hours each business day, during times to
be stated in the letter required by subparagraph I.2.b.(v). Calls to
that number shall be answered by an employee of respondents or by a
recording. If a recording is used, within 10 seconds after it begins,
it shall clearly instruct the consumer what to do if calling about the
purpose for which the consumer's consumer report was furnished.
Consumers who indicate they are calling about the purpose for which
their consumer report was furnished shall be promptly referred to an
employee of respondents, if available. If no employee is available, the
recorded message shall clearly instruct the consumer to leave a message
stating the consumer's name and telephone number, and the consumer's
comments or questions about the purpose for which the consumer report
was furnished. The recording tape shall allow at least one minute for
the consumer to record a message.
(vii) Returning promptly and in good faith all telephone calls from
consumers inquiring about the purpose for which their consumer report
was furnished, making at least two attempts to reach the consumer. If a
consumer does not answer when called, respondents shall leave a
message, if possible, including a name and telephone number for the
consumer to call to speak to an individual at respondents' office. When
responding to these consumers' calls, respondents shall elicit and
record information from the consumers bearing on whether any subscriber
may have obtained a consumer report for a purpose not permitted under
section 604 of the FCRA or for a purpose different from that identified
by the subscriber at the time the report was obtained. Respondents
shall train their employees to comply with the procedures set forth in
this subparagraph.
(viii) Requiring each subscriber to provide on an annual basis
certification updating the information previously provided on the
nature of the subscriber's business and all purposes for which the
subscriber plans to obtain consumer reports from respondents, and also
requiring the subscriber to explain the reasons for any change in the
stated purposes for obtaining consumer reports. The certification for
each subscriber shall be obtained either in writing and be dated and
signed and bear the printed or typed name of the person signing it, or
it shall be obtained by computer. If the certification is obtained by
computer, the person executing it must enter on the computer screen the
information described above, and the person's name, direct dial office
telephone number, and occupational title. The computer certification
request may appear in a form substantially similar to exhibit C.
(ix) Terminating access to any consumer report as to any subscriber
who: (1) Respondents learn, through the procedures described in
subparagraphs I.2.b.(v), (vi) and (vii), or otherwise, has obtained,
after the effective date of this order, a consumer report for any
purpose other than a permissible purpose, unless that subscriber
obtained such report through inadvertent error--i.e., a mechanical,
electronic, or clerical error that the subscriber demonstrates was
unintentional and occurred notwithstanding the maintenance of
procedures reasonably designed to avoid such errors; or
(2) respondents have reasonable grounds to believe will not use the
report solely for permissible purposes.
3. Furnishing any consumer report for employment purposes that
contains public record information on a consumer that is likely to have
an adverse effect upon the consumer's ability to obtain employment
without notifying the consumer, at the time such report is furnished,
that public record information concerning the consumer is being
reported, and providing the name and address of the person to whom such
report is being furnished, as provided in section 613(1) of the FCRA.
The notice may be provided to the consumer in a form substantially
similar to exhibit D. Respondents are not required to provided this
notification if they have either (1) received written confirmation
directly or indirectly from the consumer reporting agency that supplied
the consumer report that the agency provides such notification to the
consumer and they have notified that agency that the report is being
provided for employment purposes, or (2) received written confirmation
from the consumer reporting agency that it maintains strict procedures
designed to insure that such public record information is complete and
up to date, as provided in section 613(2) of the FCRA.
It is further ordered that respondents, and their successors and
assigns, shall maintain for five (5) years and upon request make
available to the Federal Trade Commission for inspection and copying,
documents demonstrating compliance with the requirements of this Order.
Such documents shall include, but are not limited to, all subscriber
applications and certifications, all reports prepared in connection
with on-site investigations of subscribers' businesses, all written
records of respondents' determinations that its subscribers have
permissible purposes for obtaining consumer reports, documents
reflecting respondents' mailing of letters notifying consumers when
consumer reports on them are furnished and all documents pertaining to
respondents' receipt and treatment of consumers' written and oral
responses to those letters, and all instructions given to employees
regarding compliance with the provisions of this Order.
III
It is further ordered that respondents, and their successors and
assigns, shall deliver a copy of this Order, or a synopsis therefore
approved by the Federal Trade Commission, to all present and future
personnel, agents, or representatives having sales, advertising, or
policy responsibilities with respect to the subject matter of this
order.
IV
It is further ordered that respondents shall notify the Federal
Trade Commission at least thirty (30) days prior to any proposed change
in the corporate respondent such as dissolution, assignment, or sale
resulting in the emergence of a successor corporation, the creation or
dissolution of subsidiaries, or any other change in the corporation
that might affect compliance obligations arising out of the order.
V
It is further ordered that each individual respondent named herein
promptly notify the Federal Trade Commission of the discontinuance of
his or her present business or employment and of his or her affiliation
with a new business or employment. In addition, for a period of ten
(10) years from the date of service of this order, the respondent shall
promptly notify the Commission of each affiliation with a new business
or employment whose activities include assembling or evaluating
information on consumers or furnishing consumer reports or access to
consumer reports to third parties, or of his or her affiliation with a
new business or employment in which his or her own duties and
responsibilities involve such activities. Such notice shall include the
respondent's new business address and a statement of the nature of the
business or employment in which the respondent is newly engaged as well
as a description of his or her duties and responsibilities in
connection with the business or employment. The expiration of the
notice provision of this paragraph shall not affect any other
obligation arising under this Order.
VI
It is further ordered that respondents shall, within sixty (60)
days of service of this Order upon them, file with the Federal Trade
Commission a report, in writing, setting forth in detail the manner and
form in which they have complied with this order.
Exhibit A to the Order
Important Notice for Subscribers
The federal Fair Credit Reporting Act permits consumer reporting
agencies to provide consumer reports only for certain purposes. Any
subscriber who uses false pretenses to obtain a consumer report may
be the subject of criminal prosecution. It is also a law violation
for us to give you a consumer report unless your purpose for
obtaining it is permissible under the Act. This means that you must
always tell us the true reason for requesting a consumer report. If
the reason is not a permissible one under the Act, we are required
by law to deny your request. Listed below are the only purposes that
Section 604 of the Act permits.
(1): Pursuant to court order, or a subpoena issued by a federal
grand jury.
(2): Pursuant to the written instructions of the consumer on
whom the report is sought.
(3)(A): For use in connection with a credit transaction
involving the consumer. Evaluating a consumer's credit application
or reviewing or collecting on a credit account are all permissible
purposes for obtaining a consumer report. It is not permissible for
a creditor to obtain a report on a consumer unless the consumer has
applied for credit or has an existing credit relationship with the
creditor. Location or litigation purposes are never permissible
unless they involve collection of the consumer's credit account.
(3)(B): For use in employment decisions involving the consumer.
An employer (or its agent) may obtain a consumer report in order to
evaluate a consumer who has applied for employment or to evaluate a
consumer for promotion, reassignment or retention.
(3)(C): For use in connection with underwriting of insurance
involving the consumer. Underwriting includes issuance or renewal of
insurance, and its amount and terms. Consumer reports may not be
obtained for insurance claims purposes.
(3)(D): For use in connection with a consumer's eligibility for
a license or benefit granted by a governmental agency that is
required to consider the applicant's finances in the process.
(3)(E): For use in connection with a business transaction
involving the consumer. This section provides a strictly limited
basis for obtaining a consumer report. To qualify, the business
transaction must involve some benefit for which the consumer has
applied. A consumer's application to rent an apartment or open a
checking account would qualify, as would a consumer's request to pay
for goods by check. The business transaction must not involve
credit, employment, or insurance--those purposes are permissible
only if they meet the standards of (3) (A)-(C).
Consumer Reports Will be Provided Only for These Purposes
Exhibit B to the Order
W.D.I.A. Corporation
National Credit Information Network
Post Office Box 31221
Cincinnati, Ohio 45231-0221
Date of Report: [Insert date report furnished]
Reference: Consumer credit report provided to . . .
Company: [Insert name, address and telephone number of subscriber
who received report]
Dear Consumer: The National Credit Information Network has
provided a copy of your consumer credit report to the company listed
above, at its request.
This consumer credit report is to be used for the purpose listed
below: [List purpose identified by report recipient]
Should you have questions regarding the reason the above company
requested a copy of your consumer credit report, feel free to
contact: National Credit Information Network, Post Office Box 31221,
Cincinnati, Ohio 45231-0221.
You may elect to call us at (800) 374-1400, Mon-Fri., 9 a.m. to
12 Noon E.S.T. or Mon-Fri., 1 p.m. to 4 p.m. E.S.T.
[If end user is known, state the following:]
This report was requested on behalf of : [Identify end user]
Respectfully submitted,
Consumer Notification Department, National Credit Information Network.
Exhibit C to the Order
Annual Certification for Access to Consumer Credit Reports
Please answer the following:
State the nature of your business and describe what it actually
does>
Enter all purposes, separated by commas, for which you plan to
obtain consumer credit reports>
Please state whether your purposes for obtaining consumer credit
reports have changed from a year ago, and, if so, explain the
reasons for the changes>
Enter your:
Name>
Official business title>
Direct dial telephone number >
Do you certify, to the best of your knowledge, that the above is
true and accurate?
Yes I do -or- No I do not
Exhibit D to the Order
W.D.I.A. Corporation
National Credit Information Network
Post Office Box 31221
Cincinnati, Ohio 45231-0221
Date of Report: [Insert date report furnished]
Reference: Consumer credit report provided to . . .
Company: [Insert name, address and telephone number of subscriber
who received report]
Dear Consumer: The National Credit Information Network has
provided a copy of your consumer credit report to the company listed
above, at its request.
This consumer credit report is to be used for employment
purposes.
The consumer credit report furnished contained public record
information.
Should you have questions concerning the reason the above
company requested a copy of your consumer credit report, feel free
to contact: National Credit Information Network, Post Office Box
31221, Cincinnati, Ohio 45231-0221.
You may elect to call us at (800) 374-1400, Mon-Fri., 9 a.m. to
12 Noon E.S.T. Mon-Fri., 1 p.m. to 4 p.m. E.S.T.
[If end user is known, state the following:]
This report was requested on behalf of: [Identify end user]
Respectfully submitted,
Consumer Notification Department, National Credit Information Network.
Analysis of Proposed Consent Order to Aid Public Comment
The Federal Trade Commission has accepted an agreement to a
proposed consent order from W.D.I.A. Corporation, a corporation, and
its officers, Mark W. Hanna and Janice L. Campanello (``the
respondents'').
The proposed consent order has been placed on the public record for
sixty (60) days for reception of comments by interested persons.
Comments received during this period will become part of the public
record. After sixty (60) days, the Commission will again review the
agreement and the comments received and will decide whether it should
withdraw from the agreement or make final the agreement's proposed
order.
Respondents' business involves the purchase of information on
individual consumers from consumer reporting agencies and the resale of
that information to third parties. Firms engaged in this type of
business are sometimes called ``information brokers,'' or
``resellers.'' The complaint accompanying the proposed order alleges
that in connection with their buying and selling of consumer reports,
the respondents engaged in acts and practices violating sections 604,
607(a), and 613 of the Fair Credit Reporting Act.
The Fair Credit Reporting Act requires that consumer reporting
agencies, such as information brokers, maintain procedures designed to
protect consumers' privacy. According to the complaint, the respondents
have violated section 604 of the Fair Credit Reporting Act by regularly
furnishing consumer reports to persons under circumstances in which the
respondents have no reason to believe that the reports will be used for
any of the purposes permitted under that section of the Act.
The complaint alleges, for example, that respondents furnish
consumer reports to certain types of subscribers (respondents'
customers), such as attorneys and private investigators, who typically
have impermissible as well as permissible purposes for the consumer
reports they obtain. Such subscribers are known as ``mixed use'' users.
According to the complaint, in many instances, respondents do not have
reason to believe that these reports have been requested for a
permissible purpose. The complaint also cites as a violation of section
604 respondents' furnishing or consumer reports to new subscribers
without having made a reasonable effort to verify the purposes for
which these subscribers will use the reports.
The complaint further alleges that through the conduct discussed
above, respondents have violated section 607(a) of the Fair Credit
Reporting Act by failing to maintain reasonable procedures designed to
limit the furnishing of consumer reports to the purposes listed under
section 604.
Additionally, the compliant alleges that the respondents regularly
furnish consumer reports for employment purposes that contain public
record information that is likely to adversely affect a consumer's
ability to obtain employment, but when furnishing these reports, the
respondents do not notify the subject consumers that respondents are
reporting public record information about them, nor do they tell the
consumer the names and address of the persons to whom the respondents
have furnished the reports. Because, the complaint alleges, the
respondents do not have procedures to insure that the public record
information they are reporting is complete and up to date, the
respondents' failure to provide the notice violates section 613 of the
Fair Credit Reporting Act.
The consent order contains provisions designed to ensure that the
respondents do not engage in similar unlawful acts and practices in the
future.
Part I of the order requires the respondents to cease and desist
from furnishing any consumer report under any circumstances not
permitted by section 604 of the Fair Credit Reporting Act.
Part I also requires the respondents to maintain reasonable
procedures to limit the furnishing of consumer reports to the purposes
listed in section 604, as required by section 607(a) of the Fair Credit
Reporting Act, and mandates specific procedures that must be followed
to accomplish this objective. These include measures to verify the
identities of new subscribers, the nature of their business, and the
purposes for which they seek to obtain consumer reports. Also included
is a procedure for notifying consumers when respondents furnish
consumer reports to mixed-use users to ensure that such subscribers are
using consumer reports for permissible purposes. The specific
procedures set forth in Paragraph 2 of Part I are not necessarily
mandated by the Fair Credit Reporting Act's ``reasonable procedures''
requirement but are considered by the Commission to be appropriate
remedial relief in this case to prevent recurrence of the alleged
violations.
Part I of the order further requires that any time respondents
furnish consumer reports for employment purposes that contain public
record information that is likely to adversely affect a consumer's
ability to obtain employment, they must notify the consumer, at the
time the report is furnished, that public record information about the
consumer is being reported and provide the name and address of the
person to whom the report is being furnished, as is required by section
613(1) of the Fair Credit Reporting Act. The order permits the
respondents to forego providing this notification if they have either
received written confirmation from the consumer reporting agency that
compiled the consumer report that the agency provides such notification
to the consumer, or have received written confirmation from the agency
that it maintains strict procedures designed to ensure the public
record information it reports is complete and up to date, as required
by section 613(2).
Part II of the order requires the respondents and their successors
and assigns to maintain documents demonstrating compliance with the
order for five (5) years and to make such documents available to the
Commission upon request.
Part III of the order requires the respondents to deliver a copy of
the order to all present and future employees, agents, or
representatives having responsibilities related to the respondents'
compliance with the order.
Part IV of the order requires the respondents to notify the
Commission at least thirty (30) days before any proposed change in the
structure of the respondent corporation that might affect compliance
with the order.
Part V of the order requires the individual respondents to promptly
notify the Commission of the discontinuance of their present business
or employment and of their affiliation with a new one. Also, for ten
(10) years from the date the order is served, the individual
respondents must promptly notify the Commission of their affiliation
with new business or employment whose activities include the assembling
or evaluating of consumer information or the furnishing of consumer
reports or access to consumer reports to third parties, or in which
their own duties or responsibilities involve such activities.
Part VI of the order requires the respondents to file a written
report with the Commission within sixty (60) days after service of the
order detailing the manner and form in which they have complied with
the order.
The purpose of this analysis is to facilitate public comment on the
proposed order, and is not intended to constitute an official
interpretation of the agreement and proposed order or to modify in any
way their terms.
Donald S. Clark,
Secretary.
[FR Doc. 94-6538 Filed 3-18-94; 8:45 am]
BILLING CODE 6750-01-M