Court Deliberates Sufficiency of Standing to Bring Suit

The Eastern District of Missouri relied on Spokeo, Inc. v. Robins as well as the Third, Seventh and Ninth Circuits in determining whether a plaintiff demonstrated sufficient standing for alleged Fair Credit Reporting Act (FCRA) procedural violations.

In a recent case, Hood v. Action Logistix, LLC, Defendant, Action Logistix, conducted a background check on Hood after extending a tentative offer of employment. Upon receiving the results from that check, Hood was informed that he was no longer eligible for employment per the returned background check report. Under § 1681b(b)(3)(A) of the FCRA, anyone securing a consumer report for employment purposes is required to provide both an FCRA Summary of Rights and a copy of the report to the consumer prior to taking adverse action.

Hood claimed that he was not supplied an FCRA Summary of Rights and was also not permitted to review the report in order to address its contents before the employment offer was rescinded. Hood also did not suggest that the contents of the report were inaccurate or that his review would have resulted in a different outcome.

Action Logistix moved to dismiss, claiming that the court lacked subject matter jurisdiction since the plaintiff had not suffered concrete injury. Taking into consideration Spokeo, Inc. v. Robins, as well as the Third, Seventh and Ninth Circuits, the court ultimately determined that Hood had standing to bring suit for this procedural violation of the FCRA.

Employers are encouraged to monitor the landscape regarding the FCRA, procedural violations, and previous court decisions used by other jurisdictions when rendering determinations.

Posted: April 14, 2021

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