Lawsuit: International Paper Secretly Procures Credit Reports

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International Paper Company is facing claims that it violated the Fair Credit Reporting Act by failing to properly notify job applicants that it would be obtaining copies of their credit reports. According to the complaint:

“[The d]efendant routinely obtains and uses information in consumer reports to conduct background checks on prospective employees and existing employees, and frequently relies on such information, in whole or in part, as a basis for adverse employment action, such as termination, reduction of hours, change in position, failure to hire, and failure to promote.”

The suit argues that International Paper is required to provide prospective employees with a notice informing them that it intends to obtain copies of their consumer reports, and that this disclosure must be made in a separate document without being overshadowed by “extraneous” information. The plaintiff claims he was given a notice that included the required disclosure, but that it was not provided in a “stand-alone form.” As a result, he says he was “distracted” by the additional information in the form and unknowingly subjected to an invasion of his privacy.