The settlement comes as a result of a class action filed in March of 2014 claiming Delhaize’s – a food retailer headquartered in Belgium – job applications failed to notify applicants on a clear and conspicuous standalone disclosure and authorization form that background checks would be conducted on them. Additionally, the suit claims Food Lion also failed to obtain written permission to obtain consumer reports on potential job suitors.
Delhaize and the plaintiffs reached the $3M dollar settlement agreement through mediation earlier this month, becoming the latest in a long line of retail chains that have recently settled FCRA violation claims in light of allegations regarding background check disclosure and authorization forms. In months prior, Publix Super Markets agreed to $6.8M settlement in a comparable lawsuit and organic supermarket chain Whole Foods is currently in the process of trying to dismiss a suit also alleging claims similar to those lodged against Delhaize.
For more information on how to review your company’s disclosure and authorization forms to ensure they are in compliance with the FCRA, see our previous article on the matter here.
Source: Law360, 3/2/2015
Posted: March 23, 2015