Petco to pay $1.2 million settlement for alleged background check violations
After an almost two-year legal battle, Petco Animal Supplies Inc. has agreed to pay a seven-figure settlement to resolve claims that it failed to properly disclose the use of consumer credit reports in its background check process.
Under the proposed settlement, the retailer will pay a total of $1.2 million to more than 37,000 employees and job applicants following alleged violations of the Fair Credit Reporting Act (FCRA). The complaint claimed that the company "buries" background screening information in the fine print of its online application. The settlement - which still must be approved by a judge - would pay about $20 to each applicant named in the suit.
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