May 042015
 

Jason C. Gavejian and B. Tyler Philippi write:

The U.S. Supreme Court recently decided to hear a case brought under the Fair Credit Reporting Act (“FCRA”) to determine whether individual consumers have standing to sue a consumer reporting agency for statutory violations of the FCRA when no “actual damages” were suffered by the consumer.

The FCRA, like other privacy laws, imposes monetary damages against consumer reporting agencies for statutory violations. When Congress enacted the FCRA, it also created a private cause of action for “consumers” against “consumer reporting agencies” for statutory violations, but it did not require a consumer to allege that the violation caused any harm as a result of the violation.

The Supreme Court will likely approach the issue within the context of analyzing Congressional authority to confer Article III standing. The resolution of this separation of powers argument could have significant consequences for companies and employers covered by the FCRA and other privacy laws.

Read more on Jackson Lewis Workplace Privacy Data Management & Security Report.

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