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| Retail & PCI-DSS
August 21 2018

The Spokeo Chronicles: Another Tentative Background Check Win for Kroger Subsidiary

A magistrate judge in the U.S. District Court for the District of Oregon has made recommendations to dismiss both Fair Credit Reporting Act (FCRA) allegations against Kroger subsidiary Fred Meyer.

The class action alleges that the retailer's background check process for prospective employees violates the Act by failing to properly disclose that a report will be run and failing to comply with the statute's procedural requirements before taking adverse action against an applicant. The judge found that the disclosure satisfied the FCRA's stand-alone requirements and rejected the contention that Fred Meyer's pre-adverse action notice violates the FCRA.

In addition, the judge found that the suit lacked Article III standing to pursue his pre-adverse action claim.