Volume 6, Edition 9. September 2010

This Month’s Challenge is sponsored by:



Answer: B. Section 606(a)(1) of the FCRA requires that an employer seeking to obtain a consumer report for employment purposes must get a clear and conspicuous disclosure from the applicant, in a document consisting solely of the disclosure and such disclosure must explain that a consumer report and/or investigative consumer report may be obtained for employment purposes. The employer must also get a written authorization from the consumer, but that does not need to be separate from the employment application. The FTC has further opined that the disclosure and authorization can be together in one document.

If a company has included a statement in its employment application stating that it conduct background checks on all applicants and an applicant signs the application, is that employer compliant with the FCRA?

A) yes, but only if the employer also gets a separate authorization
B) no, the employer must also provide a disclosure separate from the application
C) no, both the authorization and disclosure must be separate from the application
D) yes


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