Consumer Reports for Employment
Employers using consumer reports must give a clear written stand-alone notice, get prior written authorization, certify compliance to the CRA (including no EEO violations), and before any adverse action provide the consumer a copy of the report and a summary of rights.
How this supports CIPP/US study
Use this lesson to separate sectoral scope, data type and regulated entity before testing an exception. Continue with the CIPP/US practice exam.
- Make a clear and conspicuous written notice in a document consisting solely of that disclosure, before obtaining the report.
- Obtain prior written authorization (which may cover access during employment).
- Certify to the CRA that the steps were followed, that use will not violate equal-opportunity law, and that adverse-action materials will be provided.
- Before taking adverse action, give the consumer a copy of the report and a summary of rights; send the adverse-action notice after the action.
In employment, the report copy and rights summary go to the consumer before the adverse action is taken; the adverse-action notice follows after. An adverse-action notice is also required if affiliate credit information (other than transactions/experience data) is used to deny employment.
Sources and study method
This independent lesson uses active recall, spaced retrieval and scenario practice. Read the full study method.