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$3 Million Settlement Announced in FCRA Suit

PRIVACY LAW—U.S.

February 6, 2013

Kmart Corporation has agreed to a $3 million settlement “stemming from allegations that it violated the Fair Credit Reporting Act (FCRA) when using background checks to make employment decisions,” the Hunton & Williams Privacy and Information Security Law Blog reports. The class-action suit alleged Kmart violated the FCRA by failing to provide “certain specific disclosures before it use[d] the report for an adverse action,” the report states. Kmart has denied “any fault, wrongdoing or liability whatsoever,” the report states, but “will pay $3 million and will be granted a ‘narrow release’ covering only the FCRA claims.”
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