IN THE UNITED STATES DISTRICT COURT

FOR THE NORTHERN DISTRICT OF GEORGIA

ATLANTA DIVISION

 

 )

UNITED STATES OF AMERICA, )

 )

 )

Plaintiff, ) Civil Action No.

 )

v. ) 

 )

CHOICEPOINT INC., a corporation, )

 )

Defendant. )

 )

STIPULATED FINAL JUDGMENT AND ORDER FOR CIVIL PENALTIES,

PERMANENT INJUNCTION, AND OTHER EQUITABLE RELIEF

Plaintiff, the United States of America, acting upon notification and authorization to the

Attorney General by the Federal Trade Commission (“FTC” or “Commission”), is concurrently

filing its Complaint, which alleges that Defendant ChoicePoint Inc. has engaged in violations of

the Fair Credit Reporting Act (“FCRA”), 15 U.S.C. §§ 1681-1681x, and in unfair or deceptive

acts or practices in violation of Section 5 of the Federal Trade Commission Act (“FTC Act”), 15

U.S.C. § 45(a). The parties have agreed to the entry of this Stipulated Final Judgment and Order

for Civil Penalties, Permanent Injunction, and Other Equitable Relief (“Order”) to resolve all

matters in dispute in this action without trial or adjudication of any issue of law or fact herein and

without Defendant admitting the truth of, or liability for, any of the matters alleged in the

Complaint. Defendant has waived service of the Summons and Complaint. 

THEREFORE, IT IS HEREBY ORDERED, ADJUDGED, AND DECREED as

follows:
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FINDINGS

1. This Court has jurisdiction over the subject matter of this case and over Defendant

ChoicePoint Inc.

2. Venue in this district is proper under 28 U.S.C. § 1391(b) and (c), and 15 U.S.C. 

§ 53(b).

3. The acts and practices of Defendant are in or affecting commerce, as “commerce”

is defined in Section 4 of the FTC Act, 15 U.S.C. § 44.

4. The Complaint states claims upon which relief may be granted against Defendant

under Sections 5(a)(1), 13(b), 16(a), and 19 of the FTC Act, 15 U.S.C. §§ 45(a)(1), 53(b), 56(a),

and 57b; and under Section 621(a) of the FCRA, 15 U.S.C. § 1681s(a).

5. Defendant makes no admissions to, and denies, the allegations in the Complaint,

other than the jurisdictional facts.

6. Defendant waives: (a) all rights to seek appellate review or otherwise challenge or

contest the validity of this Order; (b) any claim Defendant may have against the Commission, its

employees, representatives, or agents that relate to the matter stated herein; (c) all claims under

the Equal Access to Justice Act, 28 U.S.C. § 2412, as amended by Pub. L. 104-121, 110 Stat.

847, 863-64 (1996); and (d) any rights to attorneys’ fees that may arise under said provision of

law.

7. Entry of this Order is in the public interest.

DEFINITIONS

For purposes of this Order, the following definitions shall apply:
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1. “Fair Credit Reporting Act” or “FCRA” refers to 15 U.S.C. §§ 1681-1681x, as 

amended.

2. The terms “person,” “consumer,” “consumer report,” and “consumer reporting 

agency” mean as defined in Sections 603(b), (c), (d), and (f), respectively, of the FCRA, 15

U.S.C. §§ 1681a(b), 1681a(c), 1681a(d), and 1681a(f).

3. “Permissible purpose” means any of the purposes listed in Section 604 of the 

FCRA, 15 U.S.C. § 1681b, for which a consumer reporting agency may lawfully furnish a

consumer report.

4. “Subscriber” means any person or entity, excluding consumers, that enters into an

agreement with Defendant pursuant to which that person or entity may request or obtain a

consumer report or other personal information from Defendant.

5. “Mixed-use subscriber” means a subscriber that in the ordinary course of business 

typically has both permissible and impermissible purposes for ordering consumer reports.

6. “Personal information” means individually identifiable information from or about 

an individual consumer including, but not limited to: (a) a first and last name or first initial and

last name; (b) a home or other physical address, which includes at least street name and name of

city or town; (c) an email address; (d) a telephone number; (e) a Social Security number; (f)

credit and/or debit card information, including credit and/or debit card number with expiration

date; (g) date of birth; (h) a driver’s license number; or (i) any other information from or about an

individual consumer that is combined with (a) through (h) above.

7. “Signing” or “signed” means either a handwritten signature (including those

subsequently transmitted by facsimile, .pdf files, or other digital or electronic means) or an
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“electronic signature” as that term is defined in the Electronic Signatures in Global and National

Commerce Act, 15 U.S.C. § 7006(5).

8. Unless otherwise specified, “Defendant” means ChoicePoint Inc., its subsidiaries 

and operating companies, and their successors and assigns, officers, agents, representatives, and

employees. 

9. “Commerce” means as defined in Section 4 of the Federal Trade Commission 

Act, 15 U.S.C. § 44. 

ORDER

I. CIVIL PENALTY

IT IS ORDERED that Defendant shall pay to Plaintiff, pursuant to Section 621(a) of the

FCRA, 15 U.S.C. § 1681s(a), and Section 5(m)(1)(A) of the FTC Act, 15 U.S.C. § 45(m)(1)(A),

a civil penalty in the amount of ten million dollars ($10,000,000.00). 

Defendant shall make the payment required by Paragraph I within seven (7) business days

of the date of service of this Order by electronic fund transfer in accordance with instructions

provided by the Office of Consumer Litigation, Civil Division, U.S. Department of Justice,

Washington, D.C. 20530, for appropriate disposition.

In the event of any default in payment, which default continues for ten days beyond the

due date of payment, the entire unpaid penalty, together with interest, as computed pursuant to 28

U.S.C. § 1961 from the date of default to the date of payment, shall immediately become due and

payable.

II. PROHIBITED BUSINESS ACTIVITIES

IT IS FURTHER ORDERED that Defendant and all other persons or entities within the
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scope of Fed. R. Civ. P. 65, whether acting directly or through any sole proprietorship,

partnership, limited liability company, corporation, subsidiary, branch, division, or other entity,

who receive actual notice of this Order by personal service or otherwise, are hereby permanently

restrained and enjoined from:

A. Violating Section 604 of the FCRA, 15 U.S.C. § 1681b, by furnishing a consumer

report to any person who does not have a permissible purpose to receive a consumer report.

B. Failing to maintain reasonable procedures designed to limit the furnishing of

consumer reports to subscribers that have permissible purposes to receive them under Section

604 of the FCRA, 15 U.S.C. § 1681b, as required by Section 607(a) of the FCRA, 15 U.S.C. §

1681e(a). Such procedures shall include, but not necessarily be limited to:

1. With respect to prospective subscribers, before furnishing a consumer

report to any such subscriber; with respect to current subscribers, within

one hundred eighty (180) days after the date of service of this Order; and

with respect to subscribers of companies acquired by Defendant after the

date of service of this Order, within ninety (90) days after the closing of

the acquisition transaction for acquired companies with five thousand

(5000) or fewer subscribers and within one hundred eighty (180) days after

the closing of the acquisition transaction for acquired companies with

more than five thousand (5000) subscribers:

(a) Obtaining from each subscriber a written certification, either in

paper or electronic form, stating the nature of the subscriber’s

business and all purposes for which the subscriber plans to obtain
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consumer reports from Defendant. Each certification under this

provision: (1) must be dated and signed; (2) must bear the printed

or typed name of the person signing it; and (3) must state that the

person signing it has direct knowledge of the facts certified;

provided, however, that for current subscribers, the certification

may, in lieu of stating that the person signing it has direct

knowledge of the facts certified, attest to the truth of the matters

certified and the authority of the person to sign on behalf of the

subscriber.

(b) Determining, based on the information in the subscriber’s

certification under subparagraph (a) above, and any other factors of

which Defendant is aware or, under the circumstances, should

reasonably ascertain, that each subscriber has a permissible

purpose under Section 604 of the FCRA for the types of reports the

subscriber plans to obtain, or, where the subscriber is a reseller of

consumer reports, that the subscriber complies with Section

607(e)(2) of the FCRA. 

(c) As to subscribers that are businesses, verifying (1) the business

identity of the subscriber; and (2) that the subscriber is a legitimate

business engaged in the business certified and has a permissible

purpose for obtaining consumer reports. Defendant shall conduct

an on-site visual inspection of the business premises of each
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subscriber, or, in the case of a subscriber with multiple locations,

the headquarters location of the subscriber, provided, however, that 

(i) for a prospective subscriber, Defendant does not need to

conduct a site visit if Defendant independently verifies that

at the time of application:

(1) the applicant is a publicly held company under

the regulatory authority of the United States

Securities and Exchange Commission;

(2) the applicant is subject to the regulatory

authority of any agency listed in Section 621(b) of

the FCRA, 15 U.S.C. § 1681s(b);

(3) the applicant is an insurance agent sponsored by

at least one insurance company that has been a

subscriber of Defendant for at least one (1) year and

has contractually agreed to assume financial

responsibility for payment of the sponsored agent’s

acquisition of consumer reports from Defendant;

(4) the applicant has been approved by the Internal

Revenue Service as a tax-exempt organization

pursuant to Section 501(c)(3) of the Internal

Revenue Code, 26 U.S.C. § 501(c)(3), and as a

subscriber will not receive from Defendant, unless
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first provided to Defendant by the subscriber, any of

the following information about consumers:

untruncated Social Security numbers; untruncated

dates of birth; untruncated drivers’ license numbers;

or untruncated credit card, debit card, bank account,

or other financial account numbers; 

(5) the applicant has been certified by the Small

Business Administration for participation in an

SBA-administered program, such as the Section

8(a) Business Development program and the Small

Disadvantaged Business Program, 13 C.F.R. part

124, or the Historically Underutilized Business

(“HUBZone”) program, 13 C.F.R. parts 121, 125,

and 126; or

(6) the applicant has been certified by the

Department of Transportation for participation in

the Department of Transportation’s Disadvantaged

Business Enterprise Program, 49 C.F.R. part 26.

(ii) for a current subscriber, Defendant does not need to

conduct a site visit if:

(1) Defendant has independently verified that at

least one of the elements set out in (c)(i) above is
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present with respect to that subscriber; or 

(2) Defendant conducted a site visit within the oneyear period immediately prior to the date of service

of this Order that confirmed the legitimacy of the

business, and the subscriber has not subsequently

changed its address.

(iii) Defendant does not need to conduct a site visit for

subscribers that are Federal or State agencies or

departments that obtain consumer reports solely under

Section 608 of the FCRA, 15 U.S.C. § 1681f, or that certify

a permissible purpose solely under Sections 604(a)(3)(B),

604(a)(3)(D), 604(a)(4), 604(a)(5), 626, or 627, 15 U.S.C.

§§ 1681b(a)(3)(B), (a)(3)(D), (a)(4), (a)(5);1681u, or

1681v.

(d) Informing each subscriber in writing, either in paper or electronic

form, that the FCRA imposes criminal penalties against anyone

who knowingly and willfully obtains information on a consumer

from a consumer reporting agency under false pretenses, including

a fine, up to two years in prison, or both, pursuant to Section 619

of the FCRA, 15 U.S.C. § 1681q, provided that the recitation of

penalties shall be adjusted for any change in applicable law

pursuant to Section 619 of the FCRA, 15 U.S.C. § 1681q.
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(e) Providing to each subscriber to whom Defendant furnishes

consumer reports a written copy of the “Notice to Users of

Consumer Reports: Obligations of Users Under the FCRA,” 16

C.F.R. Pt. 601 Appendix C, as required by Section 607(d) of the

FCRA, 15 U.S.C. § 1681e(d), provided, however, that Defendant

may furnish an electronic copy of this notice if a subscriber obtains

consumer reports from Defendant in electronic form.

2. Beginning within thirty (30) days of the date of service of this Order, with

respect to both current and prospective subscribers, or, with respect to

subscribers of companies acquired by Defendant after the date of service

of this Order, within sixty (60) days after the closing of the acquisition

transaction:

(a) Each time any subscriber certifies a permissible purpose under

Section 604(a)(3) of the FCRA, requiring the subscriber to identify

and certify the specific subsection of Section 604(a)(3) (either by

section or description, such as “insurance underwriting”) that

provides the permissible purpose to obtain the report.

(b) Requiring each mixed-use subscriber that certifies a permissible

purpose under Section 604(a)(3)(A) of the FCRA to further identify

and certify with specificity the intended use under that subsection

each time it requests a consumer report (e.g., an attorney subscriber

who certifies a permissible purpose under Section 604(a)(3)(A)
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would also specify that it is “collecting a debt”); provided that such

certification may be made at log-on, rather than on a per consumer

report basis, in cases where the subscriber orders consumer reports

through an interactive electronic ordering system operated by

Defendant, and the subscriber has contractually certified only one

permissible purpose specified in Section 604(a)(3)(A) to obtain

consumer reports.

(c) Requiring, each time any subscriber certifies as its permissible

purpose a “legitimate business need” pursuant to Section

604(a)(3)(F) of the FCRA, that the subscriber certify and identify

with specificity that business need (e.g., “in connection with

applications for apartment rentals” or “applications to open

checking accounts”). In those cases where a subscriber has

permissible purposes that encompass more than one “legitimate

business need” under Section 604(a)(3)(F), then individual

certification and identification with specificity must be obtained by

Defendant each time the subscriber requests a consumer report.

(d) Ensuring that the following message, or one substantially identical

to it, is displayed clearly and conspicuously on the subscriber’s

screen each time a subscriber transmits a request electronically for

a consumer report: “The federal Fair Credit Reporting Act imposes

criminal penalties – including a fine, up to two years in prison, or
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both – against anyone who knowingly and willfully obtains

information on a consumer from a consumer reporting agency

under false pretenses, and other penalties for anyone who obtains

such consumer information without a permissible purpose,”

provided that the recitation of penalties shall be adjusted for any

change in applicable law pursuant to Section 619 of the FCRA, 15

U.S.C. § 1681q.

(e) Employing reasonable procedures to verify that subscribers

obtaining consumer reports are, in fact, using the reports solely for

permissible purposes. Such procedures may include, but are not

limited to, periodic Defendant-initiated audits that rely, at least in

part, upon consumer or other non-subscriber third-party

documentation of permissible purposes; provided that Defendant is

not required to obtain additional verification of the permissible

purpose with respect to any consumer report for which Defendant

has received and retained for purposes of demonstrating

compliance with this subparagraph:

 (1) a copy of a court order or a federal grand jury subpoena

ordering the release of such report;

 (2) verified documentation signed by the consumer on whom the

report was furnished expressly authorizing the release of such

report;
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(3) in the case of a report for which the purpose certified was the

collection of a judgment, a copy of the court judgment;

(4) in the case of a report for which the purpose certified was the

evaluation of an employee for promotion, reassignment, or

retention, a copy of an official business record (e.g., a W-2 Form)

clearly identifying the subscriber or the subscriber’s principal as

the employer of the consumer on whom the report was furnished;

or

(5) verification that the subscriber is a Federal or State agency or

department that obtains consumer reports solely under Section 608

of the FCRA, 15 U.S.C. § 1681f, or that certifies a permissible

purpose solely under Sections 604(a)(3)(B), 604(a)(3)(D),

604(a)(4), 604(a)(5), 626, or 627 of the FCRA, 15 U.S.C. §§

1681b(a)(3)(B), (a)(3)(D), (a)(4), (a)(5); 1681u, and 1681v.

(f) Desisting from furnishing consumer reports to any subscriber as to

which:

(1) Defendant learns, through the procedures described in

subparagraph (e), or otherwise, has obtained, after the date of

service of this Order, a consumer report for any purpose other than

a permissible purpose, unless: (i) that subscriber obtained such

report through inadvertent error, i.e., a mechanical, electronic, or

clerical error that the subscriber demonstrates was unintentional
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and occurred notwithstanding the maintenance of procedures

reasonably designed to avoid such errors; or (ii) such consumer

report was obtained through the actions of a person acting without

subscriber authorization, such as by using such subscriber’s user

identification and password, and the subscriber demonstrates that it

has implemented reasonable and appropriate procedures to prevent

a similar action or error from recurring; or

 (2) Defendant has reasonable grounds to believe will not use the

report solely for permissible purposes.

III. INFORMATION SECURITY PROGRAM

IT IS FURTHER ORDERED that Defendant and all other persons or entities within the

scope of Fed. R. Civ. P. 65, whether acting directly or through any sole proprietorship,

partnership, limited liability company, corporation, subsidiary, branch, division, or other entity,

who receive actual notice of this Order by personal service or otherwise, are hereby permanently

restrained and enjoined from, no later than the date of service of this Order:

A. Failing to establish and implement, and thereafter maintain, a comprehensive 

information security program that is reasonably designed to protect the security, confidentiality,

and integrity of personal information collected from or about consumers. Such program, the

content and implementation of which must be fully documented in writing, shall contain

administrative, technical, and physical safeguards appropriate to Defendant’s size and

complexity, the nature and scope of Defendant’s activities, and the sensitivity of the personal
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information collected from or about consumers, including: 

1. The designation of an employee or employees to coordinate and be

accountable for the information security program. 

2. The identification of material internal and external risks to the security,

confidentiality, and integrity of personal information that could result in the

unauthorized disclosure, misuse, loss, alteration, destruction, or other compromise

of such information, and assessment of the sufficiency of any safeguards in place

to control these risks. At a minimum, this risk assessment should include

consideration of risks in each area of relevant operation, including, but not limited

to: (a) employee training and management; (b) information systems, including

network and software design, information processing, storage, transmission, and

disposal; and (c) prevention, detection, and response to attacks, intrusions, or

other systems failures. 

3. The design and implementation of reasonable safeguards to control the

risks identified through risk assessment, and regular testing or monitoring of the

effectiveness of the safeguards’ key controls, systems, and procedures. 

4. The evaluation and adjustment of Defendant’s information security

program in light of the results of the testing and monitoring required by

subparagraph 3, any material changes to Defendant’s operations or business

arrangements, or any other circumstances that Defendant knows or has reason to

know may have a material impact on the effectiveness of its information security

program.
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B. Misrepresenting in any manner, expressly or by implication, the manner or extent 

to which Defendant maintains and protects the privacy, confidentiality, or security of any

personal information collected from or about consumers.

IV. BIENNIAL ASSESSMENT REQUIREMENTS

IT IS FURTHER ORDERED that Defendant shall obtain initial and biennial

assessments and reports (“Assessments”) from a qualified, objective, independent third-party

professional who uses procedures and standards generally accepted in the profession. The

reporting period for the Assessments shall cover: (1) the first one hundred and eighty (180) days

after service of the Order for the initial Assessment, and (2) each two (2) year period thereafter

for twenty (20) years after service of the Order for the biennial Assessments. Each Assessment

shall: 

A. set forth the specific administrative, technical, and physical safeguards that

Defendant has implemented and maintained during the reporting period to comply with

Paragraph III of this Order;

B. explain how such safeguards are appropriate to Defendant’s size and complexity,

the nature and scope of Defendant’s activities, and the sensitivity of the personal information

collected from or about consumers; 

C. explain how the safeguards that have been implemented meet or exceed the

protections required by Paragraph III of this Order; and

D. certify that Defendant’s security program is operating with sufficient effectiveness

to provide reasonable assurance that the security, confidentiality, and integrity of personal
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information is protected and, for biennial reports, has so operated throughout the reporting

period.

Each Assessment shall be prepared and completed within sixty (60) days after the end of

the reporting period to which the Assessment applies by a person qualified as a Certified

Information System Security Professional (CISSP) or as a Certified Information Systems Auditor

(CISA); a person holding Global Information Assurance Certification (GIAC) from the

SysAdmin, Audit, Network, Security (SANS) Institute; or a similarly qualified person or

organization approved by the Associate Director for Enforcement, Bureau of Consumer

Protection, Federal Trade Commission. 

Defendant shall provide the initial Assessment to the Associate Director for Enforcement,

Bureau of Consumer Protection, Federal Trade Commission, Washington, D.C. 20580, within

ten (10) business days after the Assessment has been prepared. All subsequent biennial

Assessments shall be retained by Defendant until three years after completion of the final

Assessment and provided to the Associate Director of Enforcement upon request within ten (10)

business days after Defendant receives such request.

V. CONSUMER REDRESS

IT IS FURTHER ORDERED that no later than ten (10) days after the date of service of

this Order, Defendant shall pay to the Federal Trade Commission the sum of five million dollars

($5,000,000.00) under the following terms and conditions: 

A. The payment shall be made by wire transfer or certified or cashier’s check made

payable to the Federal Trade Commission. In the event of any default in payment, which default
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continues for ten (10) days beyond the due date of payment, the amount due, together with

interest, as computed pursuant to 28 U.S.C. § 1961 from the date of default to the date of

payment, shall immediately become due and payable. 

B. All funds paid pursuant to this Paragraph shall be deposited into a fund

administered by the Commission or its agent to be used for equitable relief, including but not

limited to consumer redress and any attendant expenses for the administration of any redress

fund. Any consumer redress distributed by the Commission pursuant to this Part shall be

accompanied by a statement that provision of such redress by the Commission does not

constitute an admission by Defendant of wrongdoing. In the event that direct redress to

consumers is wholly or partially impracticable or funds remain after redress is completed, the

Commission may apply any remaining funds for such other equitable relief (including

information remedies) as it determines to be reasonably related to Defendant’s practices alleged

in the Complaint. Any funds not applied by the Commission for equitable relief shall be

deposited to the United States Treasury. Defendant shall have no right to challenge the

Commission’s choice of remedies under this Paragraph. 

No portion of any payments under this Paragraph shall be deemed a payment of any fine, 

penalty, punitive assessment, or forfeiture.

VI. COMPLIANCE MONITORING

IT IS FURTHER ORDERED that, for the purpose of monitoring and

investigating compliance with any provision of this Order, 

A. Within thirty (30) days of receipt of written notice from a representative of the
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Commission, Defendant shall submit additional written reports, sworn to under penalty of

perjury; produce documents for inspection and copying; appear for deposition; and/or provide

entry during normal business hours to any business location in Defendant’s possession or direct

or indirect control, to inspect the business operation.

B. In addition, the Commission is authorized to monitor compliance with this Order

by all other lawful means, including but not limited to the following:

1. Obtaining discovery from any person, without further leave of Court, using

the procedures prescribed by Fed. R. Civ. P. 30, 31, 33, 34, 36, and 45.

2. Posing as consumers and suppliers to Defendant, Defendant’s employees,

or any other entity managed or controlled in whole or in part by Defendant,

without the necessity of identification or prior notice.

C. Defendant shall permit representatives of the Commission to interview any

consultant, independent contractor, representative, agent, or employee who has agreed to such an

interview, relating in any way to any conduct subject to this Order. The person interviewed may

have counsel present. 

Provided that nothing in this Order shall limit the Commission’s lawful use of

compulsory process, pursuant to Sections 9 and 20 of the FTC Act, 15 U.S.C. §§ 49, 57b-1, to

obtain any documentary material, tangible things, testimony, or information relevant to unfair or

deceptive acts or practices in or affecting commerce (within the meaning of 15 U.S.C. §

45(a)(1)).

VII. COMPLIANCE REPORTING BY DEFENDANT
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IT IS FURTHER ORDERED that, in order that compliance with the provisions of this

Order may be monitored:

A. For a period of twenty (20) years from the date of service of this Order, Defendant

shall notify the Commission of any changes in corporate structure that may affect compliance

obligations arising under this Order, including but not limited to a dissolution, assignment, sale,

merger, or other action that would result in the emergence of a successor entity; the creation or

dissolution of a subsidiary, parent, or affiliate that engages in any acts or practices that are

subject to this Order; the filing of a bankruptcy petition; or a change in the corporate name or

address, at least thirty (30) days prior to such change, provided that, with respect to any proposed

change in the corporation about which Defendant learns less than thirty (30) days prior to the

date such action is to take place, Defendant shall notify the Commission as soon as is practicable

after obtaining such knowledge. 

B. One hundred eighty (180) days after the date of service of this Order, Defendant

shall provide a written report to the FTC, sworn to under penalty of perjury, setting forth in detail

the manner and form in which it has complied and is complying with this Order. This report

shall include, but not be limited to:

1. Any changes required to be reported pursuant to Paragraph VII.A. 

2. A copy of each acknowledgment of receipt of this Order obtained pursuant

to Paragraph IX.

C. For the purposes of this Order, Defendant shall, unless otherwise directed by the

Commission’s authorized representatives, mail all written notifications to the Commission to:

Associate Director, Division of Enforcement

Bureau of Consumer Protection
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Federal Trade Commission

Washington, D.C. 20580

D. For purposes of the compliance reporting and monitoring required by this Order,

the Commission is authorized to communicate directly with Defendant.

VIII. RECORD KEEPING

IT IS FURTHER ORDERED that:

A. For a period of six (6) years from the date of service of this Order, Defendant and

its agents, employees, officers, corporations, successors, and assigns, and those persons in active

concert or participation with them who receive actual notice of this Order by personal service or

otherwise, are hereby restrained and enjoined from failing to create and retain the following

records:

1. Subscriber files containing the names, addresses, telephone numbers, all

certifications made by the subscriber pursuant to Section 607(a) of the

FCRA and Paragraph II.B.1(a)-(b) of this Order, and all materials

considered by Defendant in connection with its verification of the identity

of the subscriber and verification of the certifications made under Section

607(a), as required by Section 607(a) of the FCRA and Paragraph II.B.1(c)

of this Order.

2. Consumer complaints (whether received in written or electronic form,

directly, indirectly or through any third party), and any responses to those

complaints, whether in written or electronic form, that relate to

Defendant’s activities as alleged in the Complaint and Defendant’s
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compliance with the provisions of this Order.

3. Copies of all training materials that relate to Defendant’s activities as

alleged in the Complaint and Defendant’s compliance with the provisions

of this Order.

4. Copies of all subpoenas and other communications with law enforcement

entities or personnel, whether in written or electronic form, if such

documents bear in any respect on Defendant’s collection, maintenance, or

furnishing of consumer reports or other personal information of

consumers. 

5. All records and documents necessary to demonstrate full compliance with

each provision of this Order, including but not limited to, copies of

acknowledgments of receipt of this Order, required by Paragraph IX.B,

and all reports submitted to the FTC pursuant to Paragraph VII. 

B. For a period of three (3) years after the date of preparation of each biennial 

Assessment required under Paragraph IV of this Order: all plans, reports, studies, reviews, audits,

audit trails, policies, training materials, work papers, and assessments, whether prepared by or on

behalf of Defendant, relating to Defendant’s compliance with Paragraph III of this Order for the

compliance period covered by such biennial Assessment. 

IX. DISTRIBUTION OF ORDER BY DEFENDANT

IT IS FURTHER ORDERED that, for a period of five (5) years from the date of service

of this Order, Defendant shall deliver copies of this Order as directed below:
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A. Defendant shall deliver a copy of this Order to all of its officers and directors, and

to all managers who have responsibility directly or indirectly for any matters covered by this

Order. Defendant also shall deliver an accurate summary of this Order to all of its employees

who are engaged in conduct related to Defendant’s compliance with Section 607(a) of the FCRA,

including but not limited to those employees who verify the identity of prospective users of

consumer reports, those employees who verify the uses certified to Defendant by prospective

users of consumer reports, and those employees who monitor or audit the continued compliance

by Defendant’s subscribers with their certification of permissible purposes. Defendant also shall

deliver an accurate summary of this Order to all of its employees who are engaged in conduct

related to Defendant’s activities that are the subject of Paragraphs III and IV of this Order,

including but not limited to those employees designated as information security program

coordinators. For current personnel, delivery shall occur within ten (10) business days of the date

of service of this Order upon Defendant. For new personnel, delivery shall occur no later than

when they assume their job responsibilities.

B. Defendant shall secure a signed and dated statement acknowledging receipt of this

Order, within thirty (30) days of delivery to such persons, from each person receiving a copy of

the Order pursuant to this Paragraph IX.

X. ACKNOWLEDGMENT OF RECEIPT OF ORDER BY DEFENDANT

IT IS FURTHER ORDERED that Defendant, within five (5) business days of service of

this Order, shall submit to the Commission a truthful sworn statement acknowledging receipt of

this Order, in the form shown on Attachment A.

 
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XI. RETENTION OF JURISDICTION

IT IS FURTHER ORDERED that this Court shall retain jurisdiction of this matter for

purposes of construction, modification, and enforcement of this Order. 

XII. COSTS AND ATTORNEYS’ FEES

IT IS FURTHER ORDERED that each party shall bear its own costs and attorneys’ fees

incurred in connection with this action.

XIII. NOTICE OF ENTRY OF ORDER

IT IS FURTHER ORDERED that entry in the docket of this Order by the Clerk of

Court shall constitute notice to Defendant of the terms and conditions of this Order, and that

Defendant waives all rights to contest in any future proceeding whether Defendant was properly

served with this Order.

The parties hereby stipulate to the entry of the foregoing Order, which shall constitute a

final Order in this action. 

IT IS SO ORDERED:

Dated this _______day of __________________, 2006

___________________________________

UNITED STATES DISTRICT JUDGE
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The parties, by their respective counsel, hereby consent to the terms and conditions of the

Stipulated Order as set forth above and consent to the entry thereof. Defendant waives any rights

that may arise under the Equal Access to Justice Act, 28 U.S.C. § 2412, as amended by Pub. L.

104-121, 110 Stat., 847, 863-64 (1996).

FOR THE UNITED STATES OF AMERICA:

PETER D. KEISLER, JR.

Assistant Attorney General

Civil Division

U.S. Department of Justice

DAVID E. NAHMIAS

United States Attorney

Northern District of Georgia

Dated: _________________ By: _____________________________

AMY L. BERNE

Assistant United States Attorney

Georgia Bar No. 006670

Northern District of Georgia

600 United States Courthouse

75 Spring Street, S.W.

Atlanta, Georgia 30303

Tel: (404) 581-6261

Fax: (404) 581-6163

Dated: _________________ _____________________________

ALAN J. PHELPS

Trial Attorney

Office of Consumer Litigation

Civil Division

U.S. Department of Justice

Washington, D.C. 20530

Tel: (202) 307-6154

Fax: (202 514-8742
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FOR THE FEDERAL TRADE COMMISSION:

___________________________

Joel C. Winston

Associate Director for Privacy and Identity Protection

___________________________

Jessica Rich

Assistant Director for Privacy and Identity Protection

 

Kathryn D. Ratté

Attorney

___________________________

Molly Crawford

Attorney

Division of Privacy and Identity Protection

Bureau of Consumer Protection

Federal Trade Commission

Washington, D.C. 20580

(202) 326-3224

FOR THE DEFENDANT, ChoicePoint Inc.:

 

Doug Curling 

President, ChoicePoint Inc.

 

Robert R. Belair

Karla J. Letsche

Kevin L. Coy

Oldaker, Biden & Belair, LLP

818 Connecticut Avenue, N.W.

Suite 1100

Washington, D.C. 20006

Attorneys for Defendant
- 27 -

 

Joel Jankowsky

Daniel Ferrel McInnis

Akin Gump Strauss Hauer & Feld LLP

1333 New Hampshire Avenue, N.W.

Washington, D.C. 20036

Attorney for Defendant
- 28 -

ATTACHMENT A

UNITED STATES DISTRICT COURT

NORTHERN DISTRICT OF GEORGIA

UNITED STATES OF AMERICA, ) CV

 ) 

Plaintiff, )

)

v. ) AFFIDAVIT OF

) DEFENDANT

) CHOICEPOINT INC.

CHOICEPOINT INC., a )

corporation, ) 

) 

Defendant. )

_________________________________)

[Name of Defendant’s certifying official], being duly sworn, hereby states and affirms as

follows:

1. My name is________________________. My current residence address is 

_______________________________________________. I am a citizen of the United States

and am over the age of eighteen. I have personal knowledge of the facts set forth in this

Affidavit.

2. I am an officer of Defendant ChoicePoint in United States of America v.

ChoicePoint Inc. (United States District Court for the Northern District of Georgia).

3. On ______________________, I received a copy of the Stipulated Final Judgment

and Order for Civil Penalties, Permanent Injunction, and Other Equitable Relief, which was

signed by the Honorable ___________________ and entered by the Court on

_____________________. A true and correct copy of the Order I received is appended to this

Affidavit.

I declare under penalty of perjury under the laws of the United States that the foregoing is

true and correct. Executed on _________________, 2006, at ____________________________.

____________________________________

By:
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State of ________________________, City of __________________________

Subscribed and sworn to before me

this _________ day of ______, 2006.

______________________

Notary Public

My Commission Expires:

______________________