Playing A Losing Hand: District Court Dismisses FCRA Disclosure Claim Against Casino In Absence Of Concrete Injury
Under the Fair Credit Reporting Act, a potential employer generally may not procure a consumer report on an applicant unless the employer provides a disclosure, in a document that consists "solely of the disclosure," informing the applicant that a consumer report may be obtained. In Williams v. TLC Casino Enters., the District Court for the District of Nevada has joined a growing chorus of courts finding that a plaintiff cannot bring a "solely of the disclosure" claim in federal court when he or she has suffered no actual harm separate from the perceived failure to properly format the disclosure.
Specifically, in Williams, the plaintiff alleged (on a class basis) that TLC Casino Enterprises violated the FCRA by obtaining a consumer report on her without providing her with a "stand-alone document of a legal disclosure." According to Williams, TLC only provided her "with a written conditional offer to hire that included, inter alia, the following statement: 'Continuation of this position and your employment is dependent upon your passing any Background Check or Drug Screen that may be required for your position.'" This document, in Williams' view, was not a disclosure that consisted "solely of the disclosure" that a consumer report may be obtained for employment purposes.
TLC Casino Enterprises moved to dismiss Williams' complaint for lack of standing, arguing that her claim amounted to nothing more than a bare procedural violation of the FCRA. According to the defendant, Williams could not state a claim in federal court because the bare procedural violation of a statute alone does not satisfy the injury-in-fact requirement for Constitutional standing.
The Court agreed with TLC Casino Enterprises. In its decision, it drew on the Supreme Court's decision in...
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