Altmeyer Home Stores, Inc

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IN THE MA TIER OF ALTMEYER HOME STORES , INC.

CONSENT ORDER , ETe. , IN REGARD TO ALLEGED VIOLA non OF THE FAIR CREDIT REPORTING ACT AND SEe. 5 OF THE FEDERAL TRADE COMMISSION ACT Docket 3816. Complaint, June 1998--Decision, June, 1998 This consent order requires, among other things, the PeIlsylvania-based retailer of draperies and curtains to comply with the notification provisions of the Fair Credit Reporting Act when job applicants are denied employment and infonnation in the applicants' credit records played a role in the denials. Appearances For the Commission:.lohn Hallerud and C. Steven Baker. For the respondent: Thomas Farnan, Robb, Leonard Mulvihil Pittsburgh, P A.

COMPLAINT Pursuant to the provisions of the Fair Credit Reporting Act, 15 e. 1681 et seq. and the Federal Trade Commission Act, 15 U.se. 41 et seq. and by virtue of the authority vested in it by said Acts, the Federal Trade Commission, having reason to believe that Altmeyer Home Stores, Inc., 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:

DEFINITONS For the purposes of this complaint, the following definitions are applicable. The terms consumer consumer report and consumer reporting agency shall be dcfined as provided in Sections 603(c), 603(d), and 603(f), respectively, ofthe Fair Credit Reporting Act, 15 U.S. e. 1681a(c), 1681a(d) and 1681a(f). PARGRAH 1. Respondent Altmeyer Home Stores, Inc. is a corporation organized, existing and doing business under and by virtue of the laws of the State of Pennsylvania, with its office and Decision and Order 125 FT.C. principal place of business located at Central City Plaza, New Kensington, Pennsylvania.

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 Commssion Act. PAR. 4. Respondent, in the ordinary course and conduct of its business, has denied applications or rescinded offers for employment with respondent based in whole or in part on information supplied by a consumer reporting agency, but has failcd to advise consumers that the information so supplied contributcd 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 consumerreporting agency that supplied the information.

PAR. 5. By and through the practices described in paragraph four respondent has violated the provisions of Section 6l5(a) of the Fair Credit Reporting Act, 15 U. e. 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)(l) of the Federal Trade Commission Act.

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 Chicago Regional Office proposed to present to the Commssion for its consideration and which, if issued by the Commssion, would charge respondent with violations of the Federal Trade Commission Act; and The respondent, its attorneys, 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 complaint, a statement that the signing of said agreement is for settlement purposes only and does not constitute an ALTMEYER HOME STORES , INC. 1297 1295 Decision and Order admission by respondent that the law has been violated as alleged in such complaint, and waivers and other provisions as required by the Commssion 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 Act, 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 conformty with the procedure prescribed in Section 2. 34 of its Rules, the Commssion hereby issues its complaint, makes the following jurisdictional findings and enters the following order:

1. Respondent Altmeyer Homes Stores, Inc., is a corporation organized, existing and doing business under and by virtue of the laws of the State of Pennsylvania, with its office and principal place of business located at Central City Plaza, New Kensington Pennsylvania.

2. The acts and practices of the respondent alleged in this complaint have been in or affecting commerce, as " commerce " is . defined in the Federal Trade Commssion Act. 3. The Federal Trade Commssion has jurisdiction of the subject matter of this proceeding and of the respondent, and the proceeding is in the public interest.

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. e. 168Ia(c), 168Ia(d), and 1681 a(f).

It is ordered That respondent Altmeyer Home Stores, Inc. , a corporation, its successors and assigns, and its officers, agents representatives, and employees, directly or through any corporation subsidiary, division, or other device do forthwith cease and desist from failing to comply with Section 615 of the Fair Credit Reporting Act, as it existed on October I , 1995, as it has been amended effective September 30, 1997, and as it may be amended in the future. Dccision and Order 125 FTC. As provided by Section 6IS(c) of the Fair Credit Reporting Act respondent shall not be held liable for any violation of Section 61 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 61 of the Fair Credit Reporting Act.

II.

It is further ordered That respondent and its successors and assigns shall, forfive (S) years from the date of issuance of this order maintain and upon request 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, 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 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 for 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.

It is further ordered That respondent and its successors and assigns shall, for five (S) years from the date of issuance of this order deliver a copy of this order at least once per year to all persons responsible for the respondent s compliance with Section 61S(a) the Fair Credit Reporting Act.

IV.

It is further ordered That respondent and its successors and assigns shall notify the Federal Trade Commission at least thirty (30) days prior to any proposed change in the corporation that may affect compliance obligations arising under this order, including, but not limited to a dissolution, assignment, sale, merger, or other action that would result in the emergence of a successor corporation; the creation or dissolution of a subsidiary, parent, or affiliate that engages in any ALTMEYER HOME STORES , INC. 1299 1295 Decision and Order acts or practices subject to this order; the proposed filing of a bankruptcy petition; or a change in the corporate name or address. Provided, however, that with respect to any proposed change in the corporation about which respondent learns less than thirty days prior to the date such action is to take place, respondent shall notify the Commssion as soon as is practicable after obtaining such knowledge. All notices required by this Part shall be sent by certified mail to the Associate Director, Division of Enforcement, Bureau of Consumer Protection, Federal Trade Commission, Washington, D. Jt is further ordered That respondent and its successors and assigns shall, within sixty (60) days of the date of service of this order, and at such other times as the Federal Trade Commssion may require, file with the Commission a report, in writing, setting forth in detail the manner and form in which it has complied with this order. VI.

Jt is further ordered, That this order will terminate on June 16, 2018 , or twenty (20) years from the most recent date that the United States or the federal Trade Commission files a complaint (with or without an accompanying consent decree) in federal court alleging any violation of the order, whichever comes later; provided, however that the filing of such a complaint will not affcct the duration of: A. Any paragraph in this order that tcnnnatcs in less than twenty (20) years;

B. This order s application to any respondent that is not named as a defendant in such complaint; and C. This order if such complaint is filed after the order has tennnated pursuant to this paragraph.

Provided further, that if such complaint is dismissed or a federal court rules that the respondent did not violate any provision of the order and (he dismissal or ruling is either not appealed or upheld on appeal then the order wil terminatc according to this paragraph as though the complaint was never filed; except that the order will not terminate between the date such complaint is filed and the later of the deadline for appealing such dismissal or ruling and thc date such dismissal or ruling is upheld on appeal.

, ( Complaint 125 F.T.