Kemper Sports Hit with Class Action Over Alleged ‘Non-Compliant’ Background Check Authorization Form

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A proposed class action claims Kemper Sports Management, Inc. failed to provide a legally compliant background check authorization form to prospective employees.

The lawsuit alleges that because the form did not contain a “standalone” authorization disclosure and present the information in a “clear and conspicuous” manner, those who signed the form were not apprised of their rights and did not properly authorize the defendant to procure their consumer reports.

Per the complaint, the plaintiff filled out Kemper Sports’ background check authorization form on June 14, 2019 in connection with his employment at the golf course management company’s Palm Desert, California location. While the Fair Credit Reporting Act (FCRA) requires that the form contain a “standalone” disclosure informing consumers of their rights, as well as present the information in a “clear and conspicuous” manner, the defendant’s form contained “extraneous information,” in particular by combining federal and state disclosures, the case alleges.

The plaintiff says that upon reading the form, he was “confused regarding the nature of his rights” and therefore did not provide valid authorization for Kemper Sports to procure his consumer report.

“Nevertheless, Defendant procured or caused to be procured Plaintiff’s consumer report,” the complaint claims.

Kemper Sports’ non-compliant FCRA form and failure to obtain proper authorization to procure consumers’ background reports “deprived Plaintiff and others similarly situated of the right to information and the right to privacy” guaranteed by the FCRA, the case argues.

“By including extraneous information in its standard FCRA form, Defendant’s conduct is contrary to the plain language of the statute, case law, and unambiguous regulatory guidance from the Federal Trade Commission (‘FTC’),” the suit contends.

The plaintiff looks to represent anyone in the U.S. who filled out the defendant’s “Authorization of Background Investigation” form at any time during the past five years.

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