Marshall Field & Company

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IN THE MATTER OF MARSHALL FIELD & COMPANY CONSENT ORDER, ETC., INREGARD TO ALLEGED VIOLATION OF THE FAIR CREDIT REPORTING ACT AND SEC. 5 OF THE FEDERAL TRADE COMMISSION ACT Docket C-3453. Complaint, Aug. 3, 1993--Decision, Aug. 3, 1993 This consent order requires, among other things, a Chicago-based retail chain to comply with the disclosure provisions of the Fair Credit Reporting Act (FCRA) for future applicants denied employment based on information obtained from a consumer reporting agency, regardless of whether alternative employment is offered. It also requires the company to send a letter to past job applicants denied employment, since August 1990, but not previously given the requisite disclosure, so that recipients can check the information for accuracy and seek to correct any errors. Appearances For the Commission: Cynthia S. Lamb and Donald E. d’Entremont.

For the respondent: John D. French, F. aegre & Benson, Minneapolis, MN.

COMPLAINT Pursuant to the provisions of the Fair Credit Reporting Act, 15 U.S.C. 1681 et seq., and the Federal Trade Commission Act, 15 US.C. 41 et seq., and by virtue of the authority vested in it by said Acts, the Federal Trade Commission having reason to believe that Marshall Field & Company, a corporation, hereinafter referred to as respondent, has violated the provisions of said Acts, and it appearing to the Commission that a proceeding by it in respect thereof would be in the public interest, hereby issues its complaint, stating its charges in that respect as follows:

Complaint 116 F.T.C.

DEFINITIONS For the purposes of this complaint, the following definitions are applicable. The terms “consumer,” “consumer report,” and “consumer reporting agency” shall be defined as provided in Sections 603(c), 603(d), and 603(f), respectively, of the Fair Credit Reporting Act, Section ]5 U.S.C. 1681, 168la(c), 1681a(d) and 168 1a(f). PARAGRAPH 1. Respondent Marshall Field & Company is a corporation organized existing and doing business under and by virtue of the laws of the State of Delaware, with offices located at 777 Nicollet Mall, Minneapolis, Minnesota and principal place of business in Chicago, Illinois.

PAR. 2. Respondent, in the ordinary course and conduct of its business, uses information in consumer reports obtained from consumer reporting agencies in the consideration, acceptance, and denial of applicants for employment with respondent. PAR. 3. The acts and practices of respondent alleged in this complaint have been in or affecting commerce, as “commerce” is defined in the Federal Trade Commission Act. PAR. 4. Respondent, in the ordinary course and conduct of its business, has denied applications or rescinded offers for employment which respondent based in whole or in part on information supplied by a consumer reporting agency, but has failed to advise consumers that the information so supplied contributed to the adverse action taken on their applications or offers for employment, and has failed to advise consumers of the name and address of the consumer reporting agency that supplied the information. PAR. 5. By and through the use of the practices described in paragraph four, respondent has violated the provisions of Section 615(a) of the Fair Credit Reporting Act, 15 U.S.C. 1681m(a). PAR. 6. By its aforesaid failure to comply with Section 615(a) of the Fair Credit Reporting Act and pursuant to Section 621(a) thereof, respondent has engaged in unfair and deceptive acts or practices--in or affecting commerce in violation of Section 5(a)(1) of the Federal Trade Commission Act.

MARSHALL FIELD & COMPANY 779 7717 Decision and Order DECISION AND ORDER The Federal Trade Commission having initiated an investigation of certain acts and practices of the respondent named in the caption hereof, and the respondent having been furnished thereafter with a copy of a draft of complaint which the Bureau of Consumer Protection proposed to present to the Commission for its consideration, and which, if issued by the Commission, would charge respondent with violation of Section 615(a) of the Fair Credit Reporting Act and Section 5(a) of the Federal Trade Commission Act; and The respondent, its attorney, and counsel for the Commission having thereafter executed an agreement containing a consent order, an admission by the respondent of all the jurisdictional facts set forth in the aforesaid draft of the complaint, a statement that the signing of said agreement is for settlement purposes only and does not constitute an admission by respondent that the law has been violated as alleged in such complaint, and waivers and other provisions as required by the Commission’s Rules; and The Commission having thereafter considered the matter and having determined that it had reason to believe that the respondent has violated the said Acts, and that complaint should issue stating its charges in that respect, and having thereupon accepted the executed consent agreement and placed such agreement on the public record for a period of sixty (60) days, now in further conformity with the procedure prescribed in Section 2.34 of its Rules, the Commission hereby issues its complaint, makes the following jurisdictional findings, and enters the following order: 1. Respondent Marshall Field & Company, is a corporation organized, existing and doing business under and by virtue of the laws of the State of Delaware, with offices at 777 Nicollet Mall, Minneapolis, Minnesota and principal place of business located in Chicago, Illinois.

2. The Federal Trade Commission has jurisdiction of the subject matter of this proceeding and of the respondent, and the proceeding is in the public interest.

Decision and Order 116 F.T.C.

ORDER For the purpose of this order, the terms “consumer,” “consumer report,” and “consumer reporting agency” shall be defined as provided in Sections 603(c), 603(d), and 603(f), respectively, of the Fair Credit Reporting Act, 15 U.S.C. 1681, 1681a(c), 1681a(d), and 168 la(f).

I It is ordered, That respondent Marshall Field & Company, a corporation, its successors and assigns, and its officers, agents, representatives, and employees, directly or through any corporation, subsidiary, division, or other device, in connection with any application for employment, do forthwith cease and desist from: 1. Failing, whenever employment is denied either wholly or partly because of information contained in a consumer report from a consumer reporting agency, regardless of whether alternative employment is offered, to disclose to the applicant for employment at the time such adverse action is communicated to the applicant (a) that the adverse action was based wholly or partly on information contained in such a report and (b) the name and street address of the consumer reporting agency making the report. Respondent shall not be held liable for a violation of Section 615(a) of the Fair Credit Reporting Act if it shows by a preponderance of the evidence that at the time of the alleged violation it maintained reasonable procedures to assure compliance with Section 615(a) of the Fair Credit Reporting Act.

2. Failing, within ninety (90) days after the date of service of this order, to mail two (2) copies of the letter attached hereto as Appendix A, completed to provide the name and address of the consumer reporting agency supplying the report to each applicant who was denied employment by Marshall Field & Company, between August 1, 1990, and the date this order is issued, based in whole or in part on information contained in a consumer report from MARSHALL FIELD & COMPANY 781 777 Decision and Order a consumer reporting agency, such copies of the letter to be sent by first class mail to the last known address of the applicant that is reflected in respondent's files, and accompanied by a copy of the Federal Trade Commission brochure attached hereto as Appendix B, copies of which are to be provided by respondent. Copies of the letter attached as Appendix A need not be sent to any applicant who is denied employment with respondent during the time period specified above if the applicant's application file clearly shows that respondent Marshall Field & Company, has previously given the applicant notification that complies in all respects with the provisions of paragraph I.1 of this order. Il.

It is further ordered, That respondent, its successors, and assigns shall for at least five (5) years maintain for one (1) current year and upon request shall make available to the Federal Trade Commission for inspection and copying, documents demonstrating compliance with the requirements of part I of this order, such documents to include, but not be limited to, all employment evaluation criteria relating to consumer reports, written or electronic instructions given to employees regarding compliance with the provisions of this order, all notices or a written or electronically stored notation of the description of the form of notice and the date such notice was provided to applicants pursuant to any provisions of this order, and the complete application files for all applicants for whom consumer reports were obtained to whom offers of employment are not made or have been withheld, withdrawn, or rescinded based, in whole or in part, on information contained in a consumer report. II.

It is further ordered, That respondent for at least five (5) years shall distribute a copy of this order to each present and future officer and to every present and future employee, agent and representative responsible for the respondent's compliance with Section 615(a) of Decision and Order 116 F.T.C.

the Fair Credit Reporting Act and shall secure from each such person a signed statement acknowledging receipt of the copy of the order.

IV.

It is further ordered, That respondent shall for at least five (5) years hereafter notify the Federal Trade Commission at least thirty (30) days prior to any proposed change in the corporation such as dissolution, the emergence of a successor corporation, the creation or dissolution of a subsidiary, transfer of the business by assignment to another entity, or any other change in the corporation that may affect compliance obligations under the order. V.

It is further ordered, That respondent shall, within one hundred twenty (120) days of service of this order, file with the Federal Trade Commission a report, in writing, setting forth in detail the manner and form in which it has complied with this order. APPENDIX A Dear Employment Applicant:

Our records show that you applied for employment at Marshall Field & Company at some time after August 1, 1990. In assessing your job application our decision was based, at least in part, on information obtained from the credit bureau identified below:

[Name of Consumer Reporting Agency] [Street Address] It is important for you to know that a federal law, the Fair Credit Reporting Act, gives persons who are denied employment the right to know if the denial was based, in whole or in part, on information supplied by a consumer reporting MARSHALL FIELD & COMPANY 783 777 Decision and Order agency, commonly known as a credits 1 3 1 1 7 1200 617 135 29 82.631752 bureau. If so, the name and street address of the credit bureau must be disclosed to the applicant. Information in your credit report led us, at least in part, to deny your application. Based on our actions you are entitled to a free disclosure of your credit report if you contact the credit bureau within (30) days. An extra copy of this notice is enclosed so that you may give it to the agency when you request to review your file.

A brochure explaining your rights under the federal credit laws is enclosed. If you want more information about your rights, write to the Federal Trade Commission, Correspondence Branch, Washington, D.C. Thank you.

Decision and Order APPENDIX B APPENDIX B 116 F.T.C, from the Federal Trade Commission February 1992 Fair Credit Reporting If you have ever applied fora charge account, a personal! loan, insurance, or a job, someone is probably keeping a file on you.

This file might contain informa- Uon on how you pay your bills, or whether you've been sued, arrested, or have filed for bankmuptcy.

The companies that gather and sell this information are called “Consumer Reporting Agencies,” or “CRA's.” The most common type of CRA is the credit bureau. The information sold by CRA's to creditors, The Federal Trade Commission enforces the Fair Credit Reponing Act Here are answers to some questions about consumer reports and CRA's.

How do I locate the CRA that has my file? If your application was denied because of information supplied by a CRA, that agency's name and address must be supplied to you by the company you applied to. Otherwise, you can find the CRA that has your file by calling those listed in the Yellow Pages employers, insurers, and other under “credit” or “credit rating i is called a“ and reporting.” Since more than report.” This generally contains one CRA may have a file about information about where you you, call each one listed until you work and live and about your bill- locate all agencies maintaining paying habits. your file.

“In 1970, Congress passed the Fair Credit Reporting Act to give Do J have the right to consumers specific rights in dealing with CRA's. The Act Protects you by requiring credit Sc sane to furnish correct and complete information to businesses to use in evaluating your applicati for credit, insurance, ora jod.

know what the report says? Yes, if you request II. The CRA is tequircd to tell you about every piece of information in the report and, in most cases, the sources of that information. Medical information is exempt from this rule, .

The Fair Credit Reporting Act Protects you by requiring credit bureaus to fumish Correct and complete information to businesses to use in evaluating your applications for credit, insurance, or a job.

You have the right to know what Information is in your credit report.

Credit bureaus are required to conduct an investigation If you claim their information ‘on you is inaccurate or - plete.

Legitimate adverse credit information generally stays on your credit repon for Seven years; information on bankruptcies can be reported for 10 years.

Credit reports can only be given to those persons, other than yourself, who have a legitimate business need for the information, Office of Consumes/Business Education (202) 326-3680 Bureau of Consumer Protection MARSHALL FIELD & COMPANY but you can have your physician try to obtain it for you. The CRA is not required to give you a copy of the report, although more and more are doing so. You also have the right to be told the name of anyone who received a report on you in the past six months. (If your inquiry concems a job application, you can get the names of those who received a repon during the past Iwo years.) Is this information free? Yes, if your application was denied because of information furnished by the CRA, and if you request it within 30 days of receiving the denial notice. If you don’t meet these requirements, the CRA may charge a reasonable fee, What can I do if the information is inaccurate or incomplete? Notify the CRA. They're required to reinvestigate the items in question. If the new investigation reveals an error, a corrected version will be sent, on your request, to anyone who received your repon in the past six monuhs. (Job applicants can have corrected reports sent to anyone who received a copy during the past two years.) What can I do if the CRA won’t modify my report? ‘The new investigation may not resolve your dispute with the CRA. If this happens, have the CRA include your version or a summary of your version of the disputed information in your file and in future reports. At your request, Le CRA w:. *> show your version to anyone who recently received a copy of the old report There is no charge for this service if it's requesicd within 30 days after you receive notice of your application denial). After that, there may be a reasonable charge. Do I have to go in person to get the information? No, you may also request information over the phone. But before the CRA will provide any information, you must establish your identity by completing forms they will send you. If you do wish to visit in person, you will need to make an appoinument.

Decision and Order Are reports prepared on insurance and job applicants different? - If a report is prepared on you in response to an insurance or job application, i{ may be an investigative consumer report These arc much more detailed than regular consumer repons. They oficn involve interviews with acquaintances about your lifestyle, character, and reputation. Unlike regular consumer reports, you'll be notified in writing when a company orders an investigative report about you. This notice also will explain your right to ask for additional information about the report {rom the company you applied to. If your application is rejected, however, you may prefer to obtain a complete disclosure by contacting the CRA, as outlined in this fact sheeL Note that the CRA does not have to reveal the sources of the investigative information. How long can CRA's report unfavorable information? Generally, seven years. Adverse information can't be reported after that, with cenain exceptions: « bankruptcy information can be reported for 10 years: . ported because of an application fora job with a salary of more than $20,000 has no time limitation;

« ink i because of an ion for more than $50,000 wonh of credit or Ufe insurance has no time limitation:

e ink i ing a lawsuit or 5 against you can be reported for seven years or until ihe statute of limitations runs out. whichever is longer.

Can anyone get a copy of the report? No, it's only given to those with a legitimate business need.

Are there other laws I should know , about? Yes, if you applied for and were denied credit, the Equal Credit Opponunity Act requires creditors to tell you the specific reasons for your denial. For example, the creditor must tell you whether the denial was because you have “no credit file” with a CRA or because the CRA says you have “dclinquent obligations.” This law Decision and Order uso requires creditors to consider, upon request, addilional Information you might supply about your credit history.

You may wish to obtain the reason for denial from the creditor before you go to the credit bureau. Do women have special problems with credit applications? Maried and formerly married women may encounter some common credit-related problems, For more information, write for the free fact sheet, Women and Credit Histories, Public Reference, Federal Trade Commission, Washington, D.C. 20580.

Where should I report violations of the law? Although the FTC can't act as your lawyer in private di ink jon about your experiences and is vital 10 the Of the Fair Credit Reporting Act Please send questions or complaints to: Correspondence Branch, Federal Trade Commission, Washington, D.C 20580.

FTC Headquarters 6th & Pennsylvania Avcnuc, N.W.

Washington, D.C. 20580 (202) 326-2222 TDD (202) 326-2502 FTC Regional Offices 1718 Peachtree Strect, N.W., Suite 1000 Atlanta, Georgia 30367 (404) 347-4836 10 Causeway Street, Suite 1184 Boston, Massachusetts 02222-1073 (617) 565-7240 55 East Monroe Street, Suite 1437 Chicago, !Uinois 60603 (312) 353-4423 668 Euclid Avenue, Suite 520-A Cleveland, Ohio 44114 (216) $22-4207 100 N. Central Expressway, Suite $00 Dallas, Texas 75201 (214) 767-$501 1405 Cuntis Street, Suite 2900 Denver, Colorado 80202-2393 (303) 844-2271 11000 Wilshire Boulevard, Suite 13209 Los Angeles, California 90024 (310) 575-7578 150 William Suret, Suite 1300 New York, New York 10038 (212) 264-1207 901 Market Street, Suite $70 San Francisco, California 94103 {415) 744-7920 2806 Federal Building, 915 Second Avenue Seattle, Washington 98174 (206) $53-4656 NATIONAL SOCIETY OF PROFESSIONAL ENGINEERS 787 787 Complaint