[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
