[Federal Register Volume 62, Number 97 (Tuesday, May 20, 1997)]
[Notices]
[Pages 27606-27607]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-13149]


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FEDERAL TRADE COMMISSION

[File No. 962-3064]


Aldi, Inc.; Analysis to Aid Public Comment

AGENCY: Federal Trade Commission.

ACTION: Proposed Consent Agreement.

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SUMMARY: The consent agreement in this matter settles alleged 
violations of federal law prohibiting unfair or deceptive acts or 
practices or unfair methods of competition. The attached Analysis to 
Aid Public Comment describes both the allegations in the draft 
complaint that accompanies the consent agreement and the terms of the 
consent order--embodied in the consent agreement--that would settle 
these allegations.

DATES: Comments must be received on or before July 21, 1997.

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:
C. Steven Baker, Federal Trade Commission, Chicago Regional Office, 55 
East Monroe St., Suite 1437, Chicago, IL 60603. (312) 353-8156.

SUPPLEMENTARY INFORMATION: Pursuant to section 6(f) of the Federal 
Trade Commission Act, 38 Stat. 721, 15 U.S.C. 46, and Sec. 2.34 of the 
Commission's rules of practice (16 CFR 2.34), notice is hereby given 
that the above-captioned consent agreement containing a consent order 
to cease and desist, having been filed with and accepted, subject to 
final approval, by the Commission, has been placed on the public record 
for a period of sixty (60) days. The following Analysis to Aid Public 
Comment describes the terms of the consent agreement, and the 
allegations in the accompanying complaint. An electronic copy of the 
full text of the consent agreement package can be obtained from the 
Commission Actions section of the FTC Home Page (for May 13, 1997), on 
the World Wide Web, at ``http://www.ftc.gov/os/actions/htm.'' A paper 
copy can be obtained from the FTC Public Reference Room, Room H-130, 
Sixth Street and Pennsylvania Avenue, NW., Washington, DC 20580, either 
in person or by calling (202) 326-3627. 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)).

Analysis of Proposed Consent Order to Aid Public Comment

    The Federal Trade Commission has accepted an agreement, subject to 
final approval, to a proposed consent order from respondent Aldi, Inc.
    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 and take other appropriate action or make 
final the agreement's proposed order.
    This matter concerns notification requirements under the Fair 
Credit Reporting Act, 15 U.S.C. 1681. That statute requires, among 
other things, that employment applicants, who are denied employment, 
either in whole or in part, because of information in consumer reports 
obtained from consumer reporting agencies, be provided with the name 
and address of the agency making the consumer report. The failure to 
provide the notice required by the statute lessens consumers' access to 
information that may have led to the denial of employment. Proper 
notice assists consumers in discovering inaccurate or obsolete 
information in consumer reports that the consumers can subsequently 
dispute and correct. The use of consumer reports to assist in 
evaluating employment applications has become increasingly popular in 
recent years and, consequently, the significance of this notification 
requirement has heightened.
    The Commission's complaint alleges that Aldi, Inc., has denied 
employment applications based, in whole or in part, on information 
contained in consumer reports, failed to advise such job applicants 
that the denial was based in whole or in part on information contained 
in a consumer report, and failed to supply such applicants with the 
name and address of the agency making the report, as required by 
section 615(a) of the Fair Credit Reporting Act, 15 U.S.C. 1681m(a). 
The complaint also alleges that the failure to advise these job 
applicants constitutes a violation of section 615(a) of the Fair Credit 
Reporting Act, 15 U.S.C. 1681m(a). The complaint further alleges that, 
pursuant to section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. 
1681s, a violation of section 5(a)(1) constitutes an unfair or 
deceptive act or practice in violation of section 5(a)(1) of the 
Federal Trade Commission Act, 15 U.S.C. 45(a)(1).
    The proposed consent order contains provisions designed to remedy 
the violations charged and to prevent the respondents from engaging in 
similar acts and practices in the future.
    Part I of the consent agreement requires Aldi, Inc., to cease and 
desist from failing to provide the notice

[[Page 27607]]

required by section 615(a) to employment applicants whose applications 
are denied in whole or in part because of information in a credit 
report. Part I provides that Aldi may not be held liable for the 
failure to provide such notices if it demonstrates by a preponderance 
of evidence that it had instituted reasonable procedures to comply with 
section 615(a).
    Part I also requires Aldi to provide the notice required by section 
615(a) to all employment applicants, at their last known addresses, who 
were denied employment because of information in a credit report 
between January 1, 1994, and the date that the Order is issued, within 
90 days after service of the order.
    Paragraph II requires Aldi to maintain documents demonstrating its 
615(a) compliance for a period of five years from the issuance date of 
the order and to make the documents available upon request to the FTC 
for inspection and copying. Paragraph III requires Aldi to deliver 
copies of the Order, at least once per year for a period of five years 
from the date of issuance, to all persons responsible for its 
compliance. Paragraph IV requires Aldi to notify the Commission within 
30 days of changes in corporate structure for the duration of the 
order. Paragraph V provides for the filing of a compliance report with 
the Commission within 60 days of the issuance date of the order. 
Finally, Paragraph VI contains a sunset provision, which terminates the 
order 20 years after issuance.
    The purpose of this analysis is to facilitate public comment on the 
proposed consent order. It 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. 97-13149 Filed 5-19-97; 8:45 am]
BILLING CODE 6750-01-M