[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
