[Federal Register Volume 62, Number 97 (Tuesday, May 20, 1997)]
[Notices]
[Pages 27607-27608]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-13150]


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FEDERAL TRADE COMMISSION

[File No. 962-3086]


Bruno's, 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., N.W., Washington, D.C. 20580.

FOR FURTHER INFORMATION CONTACT:
Tom Carter, Federal Trade Commission, Dallas Regional Office, 1999 
Bryan Street, Suite 2150, Dallas, TX 75201. (214) 979-9350.

SUPPLEMENTARY INFORMATION: Pursuant to Section 6(f) of the Federal 
Trade Commission Act, 38 Stat. 721, 15 U.S.C. 46, and Section 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, N.W., Washington, D.C. 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 Section 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 Bruno's, 
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. Sec. 1681. The 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 Bruno's 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. 
Sec. 1681m(a). The compliant 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. Sec. 1681m(a). The complaint 
further alleges that, pursuant to Section 621(a) of the Fair Credit 
Reporting Act, 15 U.S.C. Sec. 1681s, a violation of Section 615(a) 
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. 
Sec. 45(a)(1).
    The proposed consent order contains provisions designed to prevent 
the respondents from engaging in similar acts and practices in the 
future.
    Part I of the consent agreement requires Bruno's, Inc., to cease 
and desist failing to provide the notice required by Section 615(a) to 
employment applicants whose applications were denied in whole or in 
part because of information in a credit report. Part I provides that 
Bruno's, Inc., may not be held liable for the failure to provide such 
notices if it demonstrates by a preponderance of evidence that it

[[Page 27608]]

had instituted reasonable procedures to comply with Section 615(a).
    Paragraph II requires Bruno's 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 Bruno's 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 Bruno's 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 IV 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. 97-13150 Filed 5-19-97; 8:45 am]
BILLING CODE 6750-01-M