Altmeyer Home Stores, Inc.; Analysis to Aid Public Comment

FEDERAL TRADE COMMISSION

[File No. 962-3063]

Altmeyer Home Stores, Inc.; Analysis to Aid Public Comment

AGENCY: Federal Trade Commission.

ACTION: Proposed Consent Agreement.

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SUMMARY: The consent agreement in this matter settles alleged

violations of federal law prohibiting unfair or deceptive acts or

practices or unfair methods of competition. The attached Analysis to

Aid Public Comment describes both the allegations in the draft

complaint that accompanies the consent agreement and the terms of the

consent order--embodied in the consent agreement--that would settle

these allegations.

DATES: Comments must be received on or before May 29, 1998.

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

Room 159, 6th St. and Pa. Ave., N.W., Washington, D.C. 20580.

FOR FURTHER INFORMATION CONTACT: C. Steven Baker of John C. Hallerud,

Chicago Regional Office, 55 East Monroe Street, Suite 1860, Chicago,

Illinois 60603. (312) 960-5634.

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

Trade Commission Act, 38 Stat. 721, 15 U.S.C. 46 and Section 2.34 of

the Commission's Rules of Practice (16 CFR 2.34), notice is hereby

given that the above-captioned consent agreement containing a consent

order to cease and desist, having been filed with and accepted, subject

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

record for a period of sixty (60) days. The following Analysis to Aid

Public Comment describes the terms of the consent agreement, and the

allegations in the complaint. An electronic copy of the full text of

the consent agreement package can be obtained from the FTC Home Page

(for March 24, 1998), on the World Wide Web, at ``http://www.ftc.gov/

os/actions97.htm.'' A paper copy can be obtained from the FTC Public

Reference Room, Room H-130, Sixth Street and Pennsylvania Avenue, N.W.,

Washington, D.C. 20580, either in person or by calling (202) 326-3627.

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 Section 4.9(b)(6)(ii) of the

Commission's Rules of Practice (16 CFR 4.9(b)(6)(ii)).

Analysis of Proposed Consent Order To Aid Public Comment

The Federal Trade Commission has accepted an agreement, subject to

final approval, to a proposed consent order from respondent Altmeyer

Home Stores, Inc. (``Altmeyer'').

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 and take other appropriate action or make

final the agreement's proposed order.

This matter concerns notification requirements under the Fair

Credit Reporting Act, 15 U.S.C. Sec. 1681. That statute required at the

time of the alleged violations, among other things, that employment

applicants who are denied employment, either in whole or in part,

because of information in consumer reports obtained from consumer

reporting agencies, be provided with the name and address of the agency

making the consumer report. The failure to provide the notice required

by the statute lessens consumers' access to information that may have

led to the denial of employment. Proper notice assists consumers in

discovering inaccurate or obsolete information in consumer reports that

the consumers can subsequently dispute and correct. The use of consumer

reports to assist in evaluating employment applications has become

increasingly popular in recent years and, consequently, the

significance of this notification requirement has heightened.

The Commission's complaint alleges that Altmeyer has denied

employment applications based, in whole or in part, on information

contained in consumer reports, failed to advise such job applicants

that the denial was based in whole or in part on information contained

in a consumer report, and failed to supply such applicants with the

name and address of the agency making the report, as required by

Section 615(a) of the Fair Credit Reporting Act, 15 U.S.C.

Sec. 1681m(a), prior to the amendments effective September 30, 1997.

The complaint also alleges that the failure to advise these job

applicants constitutes a violation of Section 615(a) of the Fair Credit

Reporting Act, 15 U.S.C. Sec. 1681m(a). The complaint further alleges

that, pursuant to Section 621(a) of the Fair Credit Reporting Act, 15

U.S.C. Sec. 1681s, a violation of Section 615(a) constitutes an unfair

or deceptive act or practice in violation of Section 5(a)(1) of the

Federal Trade Commission Act, 15 U.S.C. Sec. 45(a)(1).

The proposed consent order contains provisions designed to remedy

the violations charged and to prevent the respondents from engaging in

similar acts and practices in the future.

Part I of the consent agreement prohibits violations of the Fair

Credit Reporting Act as it existed during the time of the investigation

(i.e., October 1, 1995), and prospectively requires compliance with

Section 615, pursuant to amendments to the Fair Credit Reporting Act

effective September 30, 1997, and as the Fair Credit Reporting Act may

be amended in the future. Pursuant to Section 615(c) of the Fair Credit

Reporting Act, Part I provides that Altmeyer will not be held liable

for violations of Section 615 if it shows by a preponderance of the

evidence that it maintained reasonable procedures for complying with

Section 615.

Part II is a five year record keeping provision. Part III requires

that Altmeyer distribute copies of the order for five years. Part IV

requires notice to the Commission of changes in corporate structure for

the duration of the consent agreement. Part V provides for compliance

reports. Finally, Part VI

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terminates the consent agreement after twenty years.

The Fair Credit Reporting Act was extensively amended effective

September 30, 1997 and now contains significant additional requirements

for employers using consumer reports.

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

proposed consent order. It is not intended to constitute an official

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

way their terms.

By direction of the Commission.

Donald S. Clark,

Secretary.

[FR Doc. 98-8206 Filed 3-27-98; 8:45 am]

BILLING CODE 6750-01-M