[Federal Register Volume 63, Number 60 (Monday, March 30, 1998)]
[Notices]
[Pages 15202-15203]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-8206]


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FEDERAL TRADE COMMISSION

[File No. 962-3063]


Altmeyer Home Stores, 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 May 29, 1998.

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: C. Steven Baker of John C. Hallerud, 
Chicago Regional Office, 55 East Monroe Street, Suite 1860, Chicago, 
Illinois 60603. (312) 960-5634.

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 complaint. An electronic copy of the full text of 
the consent agreement package can be obtained from the FTC Home Page 
(for March 24, 1998), on the World Wide Web, at ``http://www.ftc.gov/
os/actions97.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 Altmeyer 
Home Stores, Inc. (``Altmeyer'').
    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. That statute required at the 
time of the alleged violations, 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 Altmeyer 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), prior to the amendments effective September 30, 1997. 
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. 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 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 prohibits violations of the Fair 
Credit Reporting Act as it existed during the time of the investigation 
(i.e., October 1, 1995), and prospectively requires compliance with 
Section 615, pursuant to amendments to the Fair Credit Reporting Act 
effective September 30, 1997, and as the Fair Credit Reporting Act may 
be amended in the future. Pursuant to Section 615(c) of the Fair Credit 
Reporting Act, Part I provides that Altmeyer will not be held liable 
for violations of Section 615 if it shows by a preponderance of the 
evidence that it maintained reasonable procedures for complying with 
Section 615.
    Part II is a five year record keeping provision. Part III requires 
that Altmeyer distribute copies of the order for five years. Part IV 
requires notice to the Commission of changes in corporate structure for 
the duration of the consent agreement. Part V provides for compliance 
reports. Finally, Part VI

[[Page 15203]]

terminates the consent agreement after twenty years.
    The Fair Credit Reporting Act was extensively amended effective 
September 30, 1997 and now contains significant additional requirements 
for employers using consumer reports.
    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.

    By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 98-8206 Filed 3-27-98; 8:45 am]
BILLING CODE 6750-01-M