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Friday, January 27, 2023

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Delta Airlines, Inc. Settles $2.3 Million FCRA Class Action Lawsuit Over Disclosure Language

Delta Airlines, Inc. Settles $2.3 Million FCRA Class Action Lawsuit Over Disclosure Language

We’ve been keeping you up to date on the volatility of FCRA lawsuits involving language used on disclosures, and we have another case in point to tell you about.

Delta Airlines, Inc. recently settled a class action suit in the Northern District of California, for $2.3 Million. In this case the Plaintiffs argued that the disclosures were inadequate and in violation of the FCRA because they were not clear and unambiguous, contained extraneous information and did not consist solely of the disclosure. The National Law Review posted a detailed account of the case details here.

Disclosures are such a hot topic, they were the subject of recent blogs, in Mid-November and December 2018. These articles pointed to the importance of using a clear and conspicuous, stand-alone disclosure and proper consent form. The recent lawsuits further highlight how often disclosure forms are the subject of litigation and the importance of compliance with the Fair Credit Report Act (FCRA) requirements.

Specifically, 15 U.S.C. § 1681b(b)(2)(A)(i) and (ii), require:

Except as provided in subparagraph (B), a person may not procure a consumer report, or cause a consumer report to be procured, for employment purposes with respect to any consumer, unless–

  • a clear and conspicuous disclosure has been made in writing to the consumer at any time before the report is procured or caused to be procured, in a document that consists solely of the disclosure, that a consumer report may be obtained for employment purposes;
  • the consumer has authorized in writing (which authorization may be made on the document referred to in clause (i)) the procurement of the report by that person.

SelectHire, OPENonline’s full service screening solution can help. Please contact us for more information.

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The Federal Trade Commission is another resource for employers. They produce guidance on background checks for prospective employers.

This is not legal advice, for legal advice please seek legal counsel.

#FCRA #FairCreditReportingAct #FCRACompliance #ClassAction #LegalCompliance #Lawsuit #Settlement #Disclosure #BackgroundScreening #BackgroundChecks #Hiring #OPENonline #IndustryNews

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