A district court in Florida quickly denied a motion by Whole Foods Market Group Inc. to stay a proposed class action under the Fair Credit Reporting Act until the Supreme Court rules on the pending matter in Spokeo, Inc. v. Robins, which addresses issues of claimed statutory violations. Whole Foods argued that the proposed
Consumer Lawsuits and Complaint Activity Increase During Early 2015
Lawsuits filed by consumers under the Fair Debt Collection Practices Act, Telephone Consumer Protection Act, and Fair Credit Reporting Act all increased from February to March 2015, according to the latest report from WebRecon.
FDCPA lawsuits increased by 3.9 percent (892 to 927), from February to March, and FCRA lawsuits increased 3.3 percent (245 to
Court Denies Bid to Dismiss FCRA Lawsuit Under Theory That Background Check was Not a Consumer Report
In Mattiaccio v. DHA Group, Inc., the plaintiff asserted three counts against his employer and its management under the Fair Credit Reporting Act. The defendants attempted to defeat the plaintiff’s claim by arguing the background check at issue was not a “consumer report” and, therefore, did not trigger the protections of the FCRA. Instead,
Court Approves Use of Social Media to Contact Potential Class Members Whose Mailing Addresses are Otherwise Unknown
A New York federal judge on April 17 approved a group of former Gawker Media LLC interns’ proposed revised plan to notify potential class members of their rights to opt out of a proposed collective action alleging unpaid wages through social media. The same Court had previously rejected a social media campaign as being overbroad
TCPA Defendant Asks Supreme Court to Decide Whether Complete Individual Offer of Judgment Moots Putative Class Action Case
Advertising agency Campbell-Ewald Co. began sending text messages through its subcontractor, MindMatic LLC, in 2006 as part of a Navy-approved effort to tap new technologies in recruitment campaigns, the company says. Among the recipients of the message, which began with “Destined for something big? Do it in the Navy,” was the plaintiff who said he
New York City Passes Bill Generally Banning Use of Credit Checks in Employment Decisions
Passed by a vote of 47-3, the Stop Credit Discrimination in Employment Act bans employers in New York City from using potential employees’ credit histories in making employment decisions. The bill amends the city’s Human Rights Law to make it an unlawful discriminatory practice to request or use an applicant’s consumer credit history in making
Court Holds LinkedIn Reference Searches are Not “Consumer Reports” Under the Fair Credit Reporting Act
In Sweet v. LinkedIn Corporation, a number of job applicants sued the social networking service for alleged violations of the Fair Credit Reporting Act based on LinkedIn’s “Reference Search” function. The Court dismissed the complaint at the pleadings stage, holding that the reports were not “consumer reports” and that LinkedIn was not a “consumer
Class Action Lawsuits Challenging FCRA Disclosure Forms Get Multi-District Treatment
On April 9, the U.S. Judicial Panel on Multidistrict Litigation ordered that three putative nationwide class actions against Michaels Stores Inc. be centralized in New Jersey. The actions accuse Michaels Stores of violating the Fair Credit Reporting Act (“FCRA”) by failing to properly notify job applicants that the company would access their credit reports.
Federal
Virginia Hops on the “Ban the Box” Wagon for State Employee Hiring
Virginia Governor Terry McAuliffe added Virginia to the growing list of states “banning the box” regarding criminal history on state employment applications. Given the growing list of state and even local legislation regarding applicants’ criminal histories, employers must be vigilant to ensure their employment processes comply with these multiple layers of restrictions.
On April 3,
District Court Grants Motion to Dismiss FCRA Challenge to Defendant’s Background Screening Disclosure Form
A federal district court in the Northern District of California recently dismissed a lawsuit filed against Paramount Pictures Corporation challenging its alleged failure to provide job applicants with a background check disclosure form that “consisted solely of the disclosure,” as required by the Fair Credit Reporting Act (“FCRA”). Specifically, in addition to making the disclosure