Petco Employee Background Check Class Action Settlement
Petco, a company founded by Walter Evans in 1965 and is headquartered in San Diego, CA. brings in revenue up to $4.2 billion as of 2018. Private-equity firm CVC Capital Partners Ltd. and a Canadian pension fund struck a deal to buy Petco Holdings Inc. for about $4.6 billion, one of the biggest leveraged buyouts in a slow year for such deals in 2016.
Feist and Zimmer allege Petco procured consumer reports on them and other Class Members for employment purposes without providing a stand-alone disclosure as required under the FCRA. The Petco class action lawsuit also alleges Petco failed to provide a pre-adverse action notification letter to certain Class Members against whom the company took adverse action based on information contained in the consumer report.
although Petco Animal Supplies Inc. denies any wrongdoing, they agreed to pay $1.2 million to settle a class action lawsuit alleging it violated the Fair Credit Reporting Act by procuring consumer reports for employment purposes without the proper disclosure and without obtaining proper authorization.
It is important to follow any and all laws required by FCRA and EEOC so that not only your business is protected but the rights of others outside of the organization has there rights protected. Cutting corners or failure to follow these state and federal laws could in many cases result in hefty and lengthy lawsuits that can be easily avoidable.
The Fair Credit Reporting Act (FCRA) is a federal law that regulates credit reporting agencies and compels them to insure the information they gather and distribute is a fair and accurate summary of a consumer's credit history. ... The law is intended to protect consumers from misinformation being used against them.