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Equifax Subsidiary Agrees to Settle FTC Charges

Failed to fulfill Fair Credit Reporting Act requirements

July 10, 2009
TALX Corporation, a subsidiary of Equifax Inc., has agreed to settle Federal Trade Commission charges that it violated federal law by failing to provide certain disclosures to users of their consumer reports and to entities that provide information for consumer reports.

The proposed settlement requires TALX to pay a $350,000 civil penalty and bars future violations.

TALX sells income and employment history information about consumers to lenders, pre-employment screeners, and others for use in determining their eligibility for credit, employment, or other purposes, which makes it a consumer reporting agency subject to the Fair Credit Reporting Act (FCRA), according to the FTC.

The company allegedly violated the FCRA by not providing the “Notice to Users of Consumer Reports: Obligations of Users Under the FCRA,” which notifies users of consumer reports of their statutory obligations, including notifying individuals if the user takes adverse action against them based on their consumer report.

The company also failed to provide the “Notice to Furnishers of Information: Obligations of Furnishers Under the FCRA,” which notifies furnishers – those that furnish information for consumer reports -- of their obligations to provide accurate information, correct and update inaccurate information, and reinvestigate consumer disputes.

The proposed settlement requires TALX to provide the required notices to users and furnishers. If TALX provides the notices electronically, it must follow certain specifications to make the notices “clear and prominent.”

Specifically, the notices must be unavoidable, of a size and shade and on the screen for a duration sufficient for an ordinary consumer to read and comprehend them, easily printable, and presented on the principal screen or landing page where the disclosure is relevant. These requirements are designed to ensure that the notices will be effective in communicating the information online.

The proposed settlement also contains record-keeping and reporting provisions to allow the FTC to monitor compliance with the order.

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