Blogs

INDUSTRY NEWS

Cannabis Dispensary Settles Class-Action Lawsuit for FCRA Violations

The Florida-based dispensary violated Fair Credit Reporting Act (FCRA) pre-adverse action requirements.

Plaintiffs in the case argued that they were denied employment due to the employer's background check process. According to the Plaintiffs, the employer never provided them with a pre-adverse action notice, a copy of their consumer report, and their summary of rights under the FCRA. The class-action suit states that this mistake denied potential employees their right to review the report and either dispute the results with the consumer reporting agency (CRA) or provide a consumer statement.

The employer settled the class-action suit to the amount of $60,500, spread across approximately 1,000 qualified class members.

In February, a similar class-action lawsuit was filed against a large home improvement company, alleging that the company failed to provide applicants with a copy of their consumer report or a written summary of their FCRA rights before denying employment.

Employers running background checks should ensure compliance with the hyper-vigilant pre-adverse requirements of the FCRA, which include adverse action notices, a copy of the consumer report, and a summary of the consumer's rights under the FCRA. They must also provide an adequate period of time - typically a minimum of five business days - before finalizing the adverse action.

Truescreen's Consumer Care Portal allows for the streamlined delivery and tracking of consumer compliance notifications and complies with FCRA and state-level requirements for pre-adverse and final adverse action. The portal also provides tools that allow the consumer to dispute the accuracy of their report or add a consumer statement as permissible by the FCRA. For more information on how Truescreen can help your company comply with FCRA requirements, please contact your account manager or sales executive.

Posted: August 9, 2022


All Rights Reserved © 2022 Truescreen, Inc.
This document and/or presentation is provided as a service to our customers. Its contents are designed solely for informational purposes, and should not be inferred or understood as legal advice or binding case law, nor shared with any third parties. Persons in need of legal assistance should seek the advice of competent legal counsel. Although care has been taken in preparation of these materials, we cannot guarantee the accuracy, currency or completeness of the information contained within it. Anyone using this information does so at his or her own risk.

Sending...
Thank you for your interest in Business Information Group. We have received your message and will contact you in one business day or less.
Something went wrong.Try again
You have exceeded the number of attempts to submit this form. As a result, your IP address has been temporarily blocked.
Something went wrong.Try again

Get In Touch

Send a Message *fields required

What are your Interests?optional

Even our RFP PROCESS is state-of-the-art.

Find out why
RFP Kit

What Our Clients Are Saying

The service you provide at Truescreen has been the best I have ever seen in comparison to other vendors I have worked with in the past! You guys rock!

Talent Acquisition Specialist
Retail Store Chain

I am very impressed with your company’s customer service, and the Truescreen portal seems to be an intuitive, user-friendly design.

Learning Coordinator
Public College

Our team loves working with Truescreen and the expedient, thorough service and results we get from you.

Human Resources Executive
Large Hotel Chain

I appreciate all your hard work ensuring that individuals are cleared through our processes. Truescreen makes my job so much easier and less stressful.

Human Resources Analyst
Large Academic Institution
Sending...
Thank you for your interest in Truescreen. We have received your message and will contact you within one business day.
Our apologies, there was an error processing your request.  Please resubmit your message or contact us at 888-276-8518.
You have exceeded the number of attempts to submit this form. As a result, your IP address has been temporarily blocked.
Our apologies, there was an error processing your request.  Please resubmit your message or contact us at 888-276-8518.

Get In Touch

Contact Us *fields required

What are your Interests?optional

You are leaving Truescreen.com

Ok, Continue Cancel

×
×