W.D.I.A. Corporation, et al.; Proposed Consent Agreement With Analysis To Aid Public Comment

FEDERAL TRADE COMMISSION

[Dkt. 9258]

W.D.I.A. Corporation, et al.; Proposed Consent Agreement With

Analysis To Aid Public Comment

AGENCY: Federal Trade Commission.

ACTION: Proposed consent agreement.

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SUMMARY: In settlement of alleged violations of federal law prohibiting

unfair acts and practices and unfair methods of competition, this

consent agreement, accepted subject to final Commission approval, would

prohibit, among other things, an Ohio based information corporation and

two of its officers from furnishing any consumer report for any

purposes not permitted under the Fair Credit Reporting Act, and would

require the respondents to take certain steps to ensure subscribers

have permissible purposes for accessing consumer reports in the future.

In addition, the respondents would be required to maintain a toll-free

telephone number available to consumers who have questions regarding

the purpose for which a consumer report on them was furnished.

DATES: Comments must be received on or before May 20, 1994.

ADDRESSES: Comments should be directed to: FTC/Office of the Secretary,

room 159, 6th St. and Pa. Ave., NW., Washington, DC 20580.

FOR FURTHER INFORMATION CONTACT: Ronald Isaac or David Grimes, Jr.,

FTC/S-4429, Washington, DC 20580. (202) 326-3231 or 326-3171.

SUPPLEMENTARY INFORMATION: Pursuant to section 6(f) of the Federal

Trade Commission Act, 38 Stat. 721, 15 U.S.C. 46 and Sec. 3.25(f) of

the Commission's Rules of Practice (16 CFR 3.25(f)), notice is hereby

given that the following consent agreement containing a consent order

to cease and desist, having been field with and accepted, subject to

final approval, by the Commission, has been placed on the public record

for a period of sixty (60) days. Public comment is invited. Such

comments or views will be considered by the Commission and will be

available for inspection and copying at its principal office in

accordance with Sec. 4.9(b)(6)(ii) of the Commission's Rules of

Practice (16 CFR 4.9(b)(6)(ii)).

W.D.I.A. Corporation, a corporation, and Mark W. Hanna, and

Janice L. Campanello, individually and as officers of said

corporation

Agreement Containing Consent Order To Cease and Desist

[Docket No. 9258]

The agreement herein, by and between W.D.I.A. Corporation, a

corporation, by its duly authorized officer, and Mark W. Hanna and

Janice L. Campanello, individually and as officers of said corporation,

hereinafter sometimes referred to as respondents, and their attorney,

and counsel for the Federal Trade Commission, is entered into in

accordance with the Commission's Rule governing consent order

procedures. In accordance therewith the parties hereby agree that:

1. Respondent W.D.I.A. Corporation, is a corporation organized,

existing, and doing business under and by virtue of the laws of the

State of Ohio, with its office and principal place of business located

at 7721 Hamilton Avenue, in the City of Cincinnati, State of Ohio

45321.

Respondents Mark W. Hanna and Janice L. Campanello are officers of

said corporation. They formulate, direct and control the policies, acts

and practices of said corporation, and their business address is the

same as that of said corporation.

2. Respondents have been served with a copy of the complaint issued

by the Federal Trade Commission charging them with violations of

sections 604, 607(a), and 613 of the Fair Credit Reporting Act and

section 5(a) of the Federal Trade Commission Act, and have filed

answers to said complaint denying said charges.

3. Respondents admit all the jurisdictional facts set forth in the

Commission's complaint in this proceeding.

4. Respondents waive:

(a) Any further procedural steps;

(b) The requirement that the Commission's decision contain a

statement of findings of fact and conclusions of the law;

(c) All rights to seek judicial review or otherwise to challenge or

contest the validity of the order entered pursuant to this agreement;

and

(d) any claim under the Equal Access to Justice Act.

5. This agreement shall not become a part of the public record of

the proceeding unless and until it is accepted by the Commission. If

the agreement is accepted by the Commission it will be placed on the

public record for a period of sixty (60) days and information in

respect thereto publicly released. The Commission thereafter may either

withdraw its acceptance of this agreement and so notify the

respondents, in which event it will take such action as it may consider

appropriate, or issue and serve its decision, in disposition of the

proceeding.

6. This agreement is for settlement purposes only and does not

constitute an admission by respondents that the law has been violated

as alleged in the draft of complaint here attached, or that the facts

are alleged in the draft complaint, other than jurisdictional facts,

are true.

7. This agreement contemplates that, if it is accepted by the

Commission, and if such acceptance is not subsequently withdrawn by the

Commission pursuant to the provisions of Sec. 3.25(f) of the

Commission's Rules, the Commission may without further notice to

respondents, (1) issue its decision containing the following order to

cease and desist in disposition of the proceeding, and (2) make

information public in respect thereto. When so entered, the order to

cease and desist shall have the same force and effect and may be

altered, modified or set aside in the same manner and within the same

time provided by statute for other orders. The order shall become final

upon service. Delivery by the U.S. Postal Service of the decision

containing the agreed-to order to respondents' address as stated in

this agreement shall constitute service. Respondents waive any right

they might have to any other manner of service. The complaint may be

used in construing the terms of the order, and no agreement,

understanding, representation, or interpretation not contained in the

order or in the agreement may be used to vary or to contradict the

terms of the order.

8. Respondents have read the complaint and the order contemplated

hereby. They understand that once the order has been issued, they will

be required to file one or more compliance reports showing that they

have fully complied with the order. Respondents further understand that

they may be liable for civil penalties in the amount provided by law

for each violation of the order after it becomes final.

Order

For the purpose of this Order, the following definitions apply:

``Person,'' ``consumer,'' ``consumer report,'' ``consumer reporting

agency,'' and ``employment purposes'' are defined as set forth in

section 603(b), (c), (d), (f), and (h), respectively, of the Fair

Credit Reporting Act (``FCRA''), 15 U.S.C. 1681a(b), 1681a(c), 1681(d),

1681a(f), and 1681a(h);

``Subscriber'' means any person who is approved for or obtains a

consumer report from respondents;

``Mixed-use subscriber'' means a subscriber who in the ordinary

course of business typically has both permissible and impermissible

purposes for ordering consumer reports; and

``Permissible purpose'' means any of the purposes listed in section

604 of the FCRA, 15 U.S.C. 1681b, or as it might be amended in the

future, for which a consumer reporting agency may lawfully furnish a

consumer report.

I

It is ordered that respondents, W.D.I.A. Corporation, a

corporation, its successors and assigns, and its officers, and Mark W.

Hanna and Janice L. Campanello, individually and as officers of said

corporation, and respondents' agents, representatives, and employees,

directly or through any corporation, subsidiary, division, or other

device, in connection with the furnishing of any consumer report, do

forthwith cease and desist from:

1. Furnishing any consumer report under any circumstances not

permitted by Section 604 of the FCRA.

2. Failing to maintain reasonable procedures designed to limit the

furnishing of consumer reports to the purposes listed under section 604

of the FCRA, as required by section 607(a) of the FCRA. Such procedures

shall include but not be limited to respondents doing or continuing to

do the following:

a. With respect to prospective subscribers, before furnishing a

consumer report to any such subscriber, and with respect to current

mixed-use subscribers, no later than six months after the date of this

Order: (i) Obtaining from each subscriber an initial written

certification stating the nature of the subscriber's business and all

purposes for which the subscriber plans to obtain consumer reports from

respondents. Each certification under this provision must be dated and

signed, must bear the printed or typed name of the person signing it,

and must state that the person signing it has direct knowledge of the

facts certified and supervisory responsibility for obtaining consumer

reports from respondents.

(ii) Determining, based on the information in the subscriber's

written certification, and any other factors of which respondents are

aware or, under the circumstances, should reasonably ascertain, that

each subscriber has a permissible purpose under section 604 for the

types of reports the subscriber plans to obtain. Respondents shall

create and maintain a record of the basis for this determination.

(iii) Verifying (1) the business identity of the subscriber; (2)

that the subscriber is engaged in the business certified and has a

permissible purpose for obtaining consumer reports; and (3) with

respect to prospective subscribers, that the subscriber maintains

reasonable procedures designed to prevent access to consumer reports by

unauthorized persons. Respondents shall conduct an on-site visual

inspection of the business premises of each subscriber that respondents

have not otherwise verified (e.g., through a previous on-site visual

inspection of the business premises or through business directories,

state or local regulatory authorities, or other reliable sources) to be

a legitimate business having a ``permissible purpose'' for the

information reported.

(iv) Providing each subscriber a summary of the permissible

purposes for obtaining consumer reports under section 604 of the FCRA

that is substantially identical to the summary attached to this Order

as exhibit A.

(v) Informing each subscriber in writing that the FCRA imposes

criminal penalties up to $5,000 and a year in prison against anyone who

knowingly and willfully obtains information on a consumer from a

consumer reporting agency under false pretenses.

b. With respect to both current and prospective subscribers: (1)

Requiring, any time a subscriber requests a consumer report for

employment purposes pursuant to section 604(3)(B) of the FCRA, that the

subscriber identify and certify that purpose, unless the subscriber has

previously certified that purpose to respondents as the only purpose

for which it requests consumer reports.

(ii) Requiring, any time a subscriber requests a consumer report

for a ``legitimate business need'' pursuant to section 604(3)(E) of the

FCRA, that the subscriber identify and certify that business need. Such

identification must be made in specific terms. Provided however, that a

landlord requesting a consumer report in connection with rental of an

apartment need not certify each request for a consumer report if the

landlord has previously certified that it will obtain consumer reports

solely for that purpose.

(iii) Requiring each mixed-use subscriber to identify and certify

the applicable purpose(s) each time it requests a consumer report. For

example, to identify the specific credit purpose for requesting a

report under section 604(3)(A) of the FCRA, it would suffice for an

attorney subscriber collecting a debt for a client to specify that as

his or her purpose.

(iv) Disclosing the following message, or one substantially

identical to it, on the computer screen each time a subscriber

transmits requests by computer for consumer reports: ``The Federal Fair

Credit Reporting Act imposes criminal penalties up to $5,000 and a year

in prison against anyone who knowingly and willfully obtains

information on a consumer from a consumer reporting agency under false

pretenses.''

(v) Verifying that each mixed-use subscriber is using consumer

reports solely for permissible purposes by sending a letter by first

class mail, postage prepaid, to each consumer on whom a consumer report

is furnished to a mixed-use subscriber, no later than three (3)

business days after furnishing the consumer report. Respondents shall

send the letter to the consumer's current address in an envelope

bearing respondents' company name and its return mailing address, and

stating ``PLEASE FORWARD''. The letter shall disclosure the following

information in a form substantially similar to exhibit B: (1) That

respondents have furnished a consumer report on the consumer to the

person identified by the name and address stated in the letter;

(2) The identity of the end user of the report (i.e., the person on

whose behalf the subscriber obtained the report) if known and if

different from the person to whom respondents furnished the consumer

report;

(3) The purpose identified for requesting the consumer report; and

(4) That should the consumer have questions concerning the purpose

for which the consumer report was furnished, the consumer may call

respondents at the toll-free (``800'') telephone number stated in the

letter or may write to respondents at the address stated in the letter.

(vi) Maintaining a toll-free telephone number available for

consumers to call at least six hours each business day, during times to

be stated in the letter required by subparagraph I.2.b.(v). Calls to

that number shall be answered by an employee of respondents or by a

recording. If a recording is used, within 10 seconds after it begins,

it shall clearly instruct the consumer what to do if calling about the

purpose for which the consumer's consumer report was furnished.

Consumers who indicate they are calling about the purpose for which

their consumer report was furnished shall be promptly referred to an

employee of respondents, if available. If no employee is available, the

recorded message shall clearly instruct the consumer to leave a message

stating the consumer's name and telephone number, and the consumer's

comments or questions about the purpose for which the consumer report

was furnished. The recording tape shall allow at least one minute for

the consumer to record a message.

(vii) Returning promptly and in good faith all telephone calls from

consumers inquiring about the purpose for which their consumer report

was furnished, making at least two attempts to reach the consumer. If a

consumer does not answer when called, respondents shall leave a

message, if possible, including a name and telephone number for the

consumer to call to speak to an individual at respondents' office. When

responding to these consumers' calls, respondents shall elicit and

record information from the consumers bearing on whether any subscriber

may have obtained a consumer report for a purpose not permitted under

section 604 of the FCRA or for a purpose different from that identified

by the subscriber at the time the report was obtained. Respondents

shall train their employees to comply with the procedures set forth in

this subparagraph.

(viii) Requiring each subscriber to provide on an annual basis

certification updating the information previously provided on the

nature of the subscriber's business and all purposes for which the

subscriber plans to obtain consumer reports from respondents, and also

requiring the subscriber to explain the reasons for any change in the

stated purposes for obtaining consumer reports. The certification for

each subscriber shall be obtained either in writing and be dated and

signed and bear the printed or typed name of the person signing it, or

it shall be obtained by computer. If the certification is obtained by

computer, the person executing it must enter on the computer screen the

information described above, and the person's name, direct dial office

telephone number, and occupational title. The computer certification

request may appear in a form substantially similar to exhibit C.

(ix) Terminating access to any consumer report as to any subscriber

who: (1) Respondents learn, through the procedures described in

subparagraphs I.2.b.(v), (vi) and (vii), or otherwise, has obtained,

after the effective date of this order, a consumer report for any

purpose other than a permissible purpose, unless that subscriber

obtained such report through inadvertent error--i.e., a mechanical,

electronic, or clerical error that the subscriber demonstrates was

unintentional and occurred notwithstanding the maintenance of

procedures reasonably designed to avoid such errors; or

(2) respondents have reasonable grounds to believe will not use the

report solely for permissible purposes.

3. Furnishing any consumer report for employment purposes that

contains public record information on a consumer that is likely to have

an adverse effect upon the consumer's ability to obtain employment

without notifying the consumer, at the time such report is furnished,

that public record information concerning the consumer is being

reported, and providing the name and address of the person to whom such

report is being furnished, as provided in section 613(1) of the FCRA.

The notice may be provided to the consumer in a form substantially

similar to exhibit D. Respondents are not required to provided this

notification if they have either (1) received written confirmation

directly or indirectly from the consumer reporting agency that supplied

the consumer report that the agency provides such notification to the

consumer and they have notified that agency that the report is being

provided for employment purposes, or (2) received written confirmation

from the consumer reporting agency that it maintains strict procedures

designed to insure that such public record information is complete and

up to date, as provided in section 613(2) of the FCRA.

It is further ordered that respondents, and their successors and

assigns, shall maintain for five (5) years and upon request make

available to the Federal Trade Commission for inspection and copying,

documents demonstrating compliance with the requirements of this Order.

Such documents shall include, but are not limited to, all subscriber

applications and certifications, all reports prepared in connection

with on-site investigations of subscribers' businesses, all written

records of respondents' determinations that its subscribers have

permissible purposes for obtaining consumer reports, documents

reflecting respondents' mailing of letters notifying consumers when

consumer reports on them are furnished and all documents pertaining to

respondents' receipt and treatment of consumers' written and oral

responses to those letters, and all instructions given to employees

regarding compliance with the provisions of this Order.

III

It is further ordered that respondents, and their successors and

assigns, shall deliver a copy of this Order, or a synopsis therefore

approved by the Federal Trade Commission, to all present and future

personnel, agents, or representatives having sales, advertising, or

policy responsibilities with respect to the subject matter of this

order.

IV

It is further ordered that respondents shall notify the Federal

Trade Commission at least thirty (30) days prior to any proposed change

in the corporate respondent such as dissolution, assignment, or sale

resulting in the emergence of a successor corporation, the creation or

dissolution of subsidiaries, or any other change in the corporation

that might affect compliance obligations arising out of the order.

V

It is further ordered that each individual respondent named herein

promptly notify the Federal Trade Commission of the discontinuance of

his or her present business or employment and of his or her affiliation

with a new business or employment. In addition, for a period of ten

(10) years from the date of service of this order, the respondent shall

promptly notify the Commission of each affiliation with a new business

or employment whose activities include assembling or evaluating

information on consumers or furnishing consumer reports or access to

consumer reports to third parties, or of his or her affiliation with a

new business or employment in which his or her own duties and

responsibilities involve such activities. Such notice shall include the

respondent's new business address and a statement of the nature of the

business or employment in which the respondent is newly engaged as well

as a description of his or her duties and responsibilities in

connection with the business or employment. The expiration of the

notice provision of this paragraph shall not affect any other

obligation arising under this Order.

VI

It is further ordered that respondents shall, within sixty (60)

days of service of this Order upon them, file with the Federal Trade

Commission a report, in writing, setting forth in detail the manner and

form in which they have complied with this order.

Exhibit A to the Order

Important Notice for Subscribers

The federal Fair Credit Reporting Act permits consumer reporting

agencies to provide consumer reports only for certain purposes. Any

subscriber who uses false pretenses to obtain a consumer report may

be the subject of criminal prosecution. It is also a law violation

for us to give you a consumer report unless your purpose for

obtaining it is permissible under the Act. This means that you must

always tell us the true reason for requesting a consumer report. If

the reason is not a permissible one under the Act, we are required

by law to deny your request. Listed below are the only purposes that

Section 604 of the Act permits.

(1): Pursuant to court order, or a subpoena issued by a federal

grand jury.

(2): Pursuant to the written instructions of the consumer on

whom the report is sought.

(3)(A): For use in connection with a credit transaction

involving the consumer. Evaluating a consumer's credit application

or reviewing or collecting on a credit account are all permissible

purposes for obtaining a consumer report. It is not permissible for

a creditor to obtain a report on a consumer unless the consumer has

applied for credit or has an existing credit relationship with the

creditor. Location or litigation purposes are never permissible

unless they involve collection of the consumer's credit account.

(3)(B): For use in employment decisions involving the consumer.

An employer (or its agent) may obtain a consumer report in order to

evaluate a consumer who has applied for employment or to evaluate a

consumer for promotion, reassignment or retention.

(3)(C): For use in connection with underwriting of insurance

involving the consumer. Underwriting includes issuance or renewal of

insurance, and its amount and terms. Consumer reports may not be

obtained for insurance claims purposes.

(3)(D): For use in connection with a consumer's eligibility for

a license or benefit granted by a governmental agency that is

required to consider the applicant's finances in the process.

(3)(E): For use in connection with a business transaction

involving the consumer. This section provides a strictly limited

basis for obtaining a consumer report. To qualify, the business

transaction must involve some benefit for which the consumer has

applied. A consumer's application to rent an apartment or open a

checking account would qualify, as would a consumer's request to pay

for goods by check. The business transaction must not involve

credit, employment, or insurance--those purposes are permissible

only if they meet the standards of (3) (A)-(C).

Consumer Reports Will be Provided Only for These Purposes

Exhibit B to the Order

W.D.I.A. Corporation

National Credit Information Network

Post Office Box 31221

Cincinnati, Ohio 45231-0221

Date of Report: [Insert date report furnished]

Reference: Consumer credit report provided to . . .

Company: [Insert name, address and telephone number of subscriber

who received report]

Dear Consumer: The National Credit Information Network has

provided a copy of your consumer credit report to the company listed

above, at its request.

This consumer credit report is to be used for the purpose listed

below: [List purpose identified by report recipient]

Should you have questions regarding the reason the above company

requested a copy of your consumer credit report, feel free to

contact: National Credit Information Network, Post Office Box 31221,

Cincinnati, Ohio 45231-0221.

You may elect to call us at (800) 374-1400, Mon-Fri., 9 a.m. to

12 Noon E.S.T. or Mon-Fri., 1 p.m. to 4 p.m. E.S.T.

[If end user is known, state the following:]

This report was requested on behalf of : [Identify end user]

Respectfully submitted,

Consumer Notification Department, National Credit Information Network.

Exhibit C to the Order

Annual Certification for Access to Consumer Credit Reports

Please answer the following:

State the nature of your business and describe what it actually

does>

Enter all purposes, separated by commas, for which you plan to

obtain consumer credit reports>

Please state whether your purposes for obtaining consumer credit

reports have changed from a year ago, and, if so, explain the

reasons for the changes>

Enter your:

Name>

Official business title>

Direct dial telephone number >

Do you certify, to the best of your knowledge, that the above is

true and accurate?

Yes I do -or- No I do not

Exhibit D to the Order

W.D.I.A. Corporation

National Credit Information Network

Post Office Box 31221

Cincinnati, Ohio 45231-0221

Date of Report: [Insert date report furnished]

Reference: Consumer credit report provided to . . .

Company: [Insert name, address and telephone number of subscriber

who received report]

Dear Consumer: The National Credit Information Network has

provided a copy of your consumer credit report to the company listed

above, at its request.

This consumer credit report is to be used for employment

purposes.

The consumer credit report furnished contained public record

information.

Should you have questions concerning the reason the above

company requested a copy of your consumer credit report, feel free

to contact: National Credit Information Network, Post Office Box

31221, Cincinnati, Ohio 45231-0221.

You may elect to call us at (800) 374-1400, Mon-Fri., 9 a.m. to

12 Noon E.S.T. Mon-Fri., 1 p.m. to 4 p.m. E.S.T.

[If end user is known, state the following:]

This report was requested on behalf of: [Identify end user]

Respectfully submitted,

Consumer Notification Department, National Credit Information Network.

Analysis of Proposed Consent Order to Aid Public Comment

The Federal Trade Commission has accepted an agreement to a

proposed consent order from W.D.I.A. Corporation, a corporation, and

its officers, Mark W. Hanna and Janice L. Campanello (``the

respondents'').

The proposed consent order has been placed on the public record for

sixty (60) days for reception of comments by interested persons.

Comments received during this period will become part of the public

record. After sixty (60) days, the Commission will again review the

agreement and the comments received and will decide whether it should

withdraw from the agreement or make final the agreement's proposed

order.

Respondents' business involves the purchase of information on

individual consumers from consumer reporting agencies and the resale of

that information to third parties. Firms engaged in this type of

business are sometimes called ``information brokers,'' or

``resellers.'' The complaint accompanying the proposed order alleges

that in connection with their buying and selling of consumer reports,

the respondents engaged in acts and practices violating sections 604,

607(a), and 613 of the Fair Credit Reporting Act.

The Fair Credit Reporting Act requires that consumer reporting

agencies, such as information brokers, maintain procedures designed to

protect consumers' privacy. According to the complaint, the respondents

have violated section 604 of the Fair Credit Reporting Act by regularly

furnishing consumer reports to persons under circumstances in which the

respondents have no reason to believe that the reports will be used for

any of the purposes permitted under that section of the Act.

The complaint alleges, for example, that respondents furnish

consumer reports to certain types of subscribers (respondents'

customers), such as attorneys and private investigators, who typically

have impermissible as well as permissible purposes for the consumer

reports they obtain. Such subscribers are known as ``mixed use'' users.

According to the complaint, in many instances, respondents do not have

reason to believe that these reports have been requested for a

permissible purpose. The complaint also cites as a violation of section

604 respondents' furnishing or consumer reports to new subscribers

without having made a reasonable effort to verify the purposes for

which these subscribers will use the reports.

The complaint further alleges that through the conduct discussed

above, respondents have violated section 607(a) of the Fair Credit

Reporting Act by failing to maintain reasonable procedures designed to

limit the furnishing of consumer reports to the purposes listed under

section 604.

Additionally, the compliant alleges that the respondents regularly

furnish consumer reports for employment purposes that contain public

record information that is likely to adversely affect a consumer's

ability to obtain employment, but when furnishing these reports, the

respondents do not notify the subject consumers that respondents are

reporting public record information about them, nor do they tell the

consumer the names and address of the persons to whom the respondents

have furnished the reports. Because, the complaint alleges, the

respondents do not have procedures to insure that the public record

information they are reporting is complete and up to date, the

respondents' failure to provide the notice violates section 613 of the

Fair Credit Reporting Act.

The consent order contains provisions designed to ensure that the

respondents do not engage in similar unlawful acts and practices in the

future.

Part I of the order requires the respondents to cease and desist

from furnishing any consumer report under any circumstances not

permitted by section 604 of the Fair Credit Reporting Act.

Part I also requires the respondents to maintain reasonable

procedures to limit the furnishing of consumer reports to the purposes

listed in section 604, as required by section 607(a) of the Fair Credit

Reporting Act, and mandates specific procedures that must be followed

to accomplish this objective. These include measures to verify the

identities of new subscribers, the nature of their business, and the

purposes for which they seek to obtain consumer reports. Also included

is a procedure for notifying consumers when respondents furnish

consumer reports to mixed-use users to ensure that such subscribers are

using consumer reports for permissible purposes. The specific

procedures set forth in Paragraph 2 of Part I are not necessarily

mandated by the Fair Credit Reporting Act's ``reasonable procedures''

requirement but are considered by the Commission to be appropriate

remedial relief in this case to prevent recurrence of the alleged

violations.

Part I of the order further requires that any time respondents

furnish consumer reports for employment purposes that contain public

record information that is likely to adversely affect a consumer's

ability to obtain employment, they must notify the consumer, at the

time the report is furnished, that public record information about the

consumer is being reported and provide the name and address of the

person to whom the report is being furnished, as is required by section

613(1) of the Fair Credit Reporting Act. The order permits the

respondents to forego providing this notification if they have either

received written confirmation from the consumer reporting agency that

compiled the consumer report that the agency provides such notification

to the consumer, or have received written confirmation from the agency

that it maintains strict procedures designed to ensure the public

record information it reports is complete and up to date, as required

by section 613(2).

Part II of the order requires the respondents and their successors

and assigns to maintain documents demonstrating compliance with the

order for five (5) years and to make such documents available to the

Commission upon request.

Part III of the order requires the respondents to deliver a copy of

the order to all present and future employees, agents, or

representatives having responsibilities related to the respondents'

compliance with the order.

Part IV of the order requires the respondents to notify the

Commission at least thirty (30) days before any proposed change in the

structure of the respondent corporation that might affect compliance

with the order.

Part V of the order requires the individual respondents to promptly

notify the Commission of the discontinuance of their present business

or employment and of their affiliation with a new one. Also, for ten

(10) years from the date the order is served, the individual

respondents must promptly notify the Commission of their affiliation

with new business or employment whose activities include the assembling

or evaluating of consumer information or the furnishing of consumer

reports or access to consumer reports to third parties, or in which

their own duties or responsibilities involve such activities.

Part VI of the order requires the respondents to file a written

report with the Commission within sixty (60) days after service of the

order detailing the manner and form in which they have complied with

the order.

The purpose of this analysis is to facilitate public comment on the

proposed order, and is not intended to constitute an official

interpretation of the agreement and proposed order or to modify in any

way their terms.

Donald S. Clark,

Secretary.

[FR Doc. 94-6538 Filed 3-18-94; 8:45 am]

BILLING CODE 6750-01-M