IN THE UNITED STATES DISTRICT COURT 


FOR THE EASTERN DISTRICT OF MISSOURI 


) 

UNITED STATES OF AMERICA ) 

) 

Plaintiff, ) 

) Civil Action No. 

) 

v. ) 

) 

T ALX Corporation, ) 

) 

Defendant. ) 

) 

COMPLAINT FOR CIVIL PENAL TIES, 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"), for 

its Complaint alleges that: 

1. Plaintiff brings this action under sections 5(a), 13(b), and 16(a) of the 

Federal Trade Commission Act ("FTC Act"), IS U.S.C. §§ 45(a), 53(b), and 56(a); and 

section 621(a) of the Fair Credit Reporting Act ("FCRA"), IS U.S.C. § 1681s(a), to 

obtain monetary civil penalties, and injunctive or other relieffrom Defendant for 

engaging in violations of the FTC Act, IS U.S.C. § 45(a), and the FCRA, 15 U.S.c. 

§§ 1681 - 1681x. 

JURISDICTION AND VENUE 

2. This Court has subject matter jurisdiction over this matter under 28 U.S.c. 

§§ 1331, 1337(a), 1345, and 1355, and under IS U.S.C, §§ 45(a), 53(b), 56(a), and 1681s. 

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3. Venue in the United States District Court for the Eastern District of 

Missouri is proper under 15 U.S.c. § 53(b) and under 28 U.S.C. §§ 1391(b)-(c) and 

1395(a). 

DEFENDANT 

4. Defendant TALX Corporation ("T ALX" or "Defendant") is a for-profit 

corporation organized, existing, and doing business under the laws of the State of 

Missouri. T ALX, a wholly-owned subsidiary of Equifax Inc., has its principal place of 

business at 11432 Lackland Road, St. Louis, Missouri 63146. At all times relevant to 

this complaint, T ALX has transacted business in this district. 

THE FAIR CREDIT REPORTING ACT 

5. The FCRA was enacted in 1970, became effective on April 25, 1971, and 

has been in force since that date. The Fair and Accurate Credit Transactions Act 

amended the FCRA in December 2003. 

6. Section 621 ofthe FCRA, 15 U.S.C. § 1681s, authorizes the Commission 

to use all of its functions and powers under the FTC Act to enforce compliance with the 

FCRA by all persons subject thereto except to the extent that enforcement specifically is 

committed to some other governmental agency, irrespective of whether the person is 

engaged in commerce or meets any other jurisdictional tests set forth by the FTC Act. 

VIOLATIONS OF THE FAIR CREDIT REPORTING ACT 

7. Since at least 2002, one aspect ofTALX's business has been to sell 

income and employment history information about consumers to lenders, preemployment screeners, social service agencies, and others. These entities use the 

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information in determining the consumers' eligibility for credit, employment, 

government benefits, or other purposes. T ALX obtains this employment and income 

information from its employer-clients, and the reports on income and employment 

history are created by searching more than one employer-client file. 

8. The reports on income and employment history that T ALX provides to 

third-parties are consumer reports as defined in section 603(d) ofthe FCRA, 15 U.S.C. 

§ 1681 a( d). That section defines a "consumer report" as any written, oral, or other 

communication of any information by a consumer reporting agency bearing on a 

consumer's credit worthiness, credit standing, credit capacity, character, general 

reputation, personal characteristics, or mode of living which is used or expected to be 

used or collected in whole or in part for the purpose of serving as a factor in establishing 

the consumer's eligibility for (A) credit or insurance to be used primarily for personal, 

family, or household purposes; (B) employment purposes; or (C) any other purpose 

authorized under section 604 of the FCRA, 15 U.S.C. § 1681b. These reports are 

communicated to third parties, bear on the consumer's credit worthiness and/or other 

attributes listed in section 603(d), and are used as a factor in determining the consumer's 

eligibility for credit, employment, or other purposes specified in section 604. 

9. In providing employment and income history reports, TALX is now and 

has been a "consumer reporting agency" as that term is defined in section 603(f) ofthe 

FCRA, 15 U.S.C. § 1681a(f). That section defines a "consumer reporting agency" as any 

person which, for monetary fees, dues, or on a cooperative nonprofit basis, regularly 

engages in whole or in part in the practice of assembling or evaluating consumer credit 

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information or other information on consnmers for the purpose of furnishing consnmer 

reports to third parties, and which uses any means or facility of interstate commerce for 

the purpose of preparing or furnishing consumer reports. TALX regularly assembles and 

provides consumer reports to third parties in interstate commerce. In particular, T ALX 

is a "nationwide specialty consnmer reporting agency," as that term is defined in section 

603(w) of the FCRA, 15 U.S.C. § 1681a(w). That section defines a "nationwide 

specialty consumer reporting agency" as a consumer reporting agency that compiles and 

maintains files on consumers on a nationwide basis relating to (l) medical records or 

payments; (2) residential or tenant history; (3) check writing history; (4) employment 

history; or (5) insurance claims. T ALX compiles and maintains files on consumers on a 

nationwide basis that relate, inter alia, to consumers' employment and income history. 

COUNT I - VIOLATIONS OF SECTION 607(d) OF THE FCRA 

10. Section 607(d)(1) of the FCRA, 15 U.S.C. § 1681e(d)(l), requires that a 

consumer reporting agency provide, to any person who regularly and in the ordinary 

course of business furnishes information about any consumer to the consumer reporting 

agency ("furnisher"), a "Notice To Furnishers ofInformation: Obligations of Furnishers 

Under the FCRA" ("Furnisher Notice"), the acceptable content of which is set forth in 

16 CFR 698, Appendix O. Section 607(d)(2) of the FCRA, 15 U.S.C. § 1681e(d)(2), 

requires that a consumer reporting agency provide, to any person to whom it provides a 

consumer report ("users"), a "Notice To Users of Consumer Reports: Obligations of 

Users Under the FCRA" ("User Notice"), the acceptable content ofwhich is set forth in 

16 CFR 698, Appendix H. 

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II. Prior to 2006, T ALX failed to provide Furnisher Notices to furnishers or 

User Notices to users. 

12. By and through the acts and practices described in Paragraph 12 above, 

TALX has violated section 607(d) of the FCRA, IS U.S.C. § 1681e(dk 

13. Pursuant to section 621(a)(l) of the FCRA, IS U.S.C. § 168Is(a)(1), the 

acts and practices alleged in Paragraph 12 also constitute unfair or deceptive acts or 

practices in violation of section 5(a) of the FTC Act, IS U.S.C. § 45(a). 

THIS COURT'S POWER TO GRANT RELIEF 

14. Section 621 (a)(2)(A) of the FCRA, IS U.S.C. § 168Is(a)(2)(A), authorizes 

the Court to award monetary civil penalties of not more than $2,500 per violation of the 

FCRA in the event of a knowing violation, which constitutes a pattern or practice of 

violations. TALX's violations of sections 607(d) of the FCRA, IS U.S.c. § 168Ie(d), as 

alleged in this Complaint, were knowing and constituted a pattern or practice of 

violations. 

IS. Each instance in which TALX has failed to comply with sections 607(d) 

ofthe FCRA, IS U.S.C. § 168Ie(d), constitutes a separate violation of the FCRA for the 

purpose of assessing monetary civil penalties. Plaintiff seeks monetary civil penalties for 

every separate violation of the FCRA. 

16. Under section 621(a) of the FCRA, IS U.S.C. § 168Is(a), and section 

13(b) of the FTC Act, IS U.S.C. § 53(b), this Court is authorized to issue a permanent 

injunction prohibiting Defendant from violating the FTC Act and the FCRA. 

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PRAYER FOR RELIEF 

WHEREFORE, Plaintiff requests that this Court, pursuant to IS U.S.C. 

§§ 4S(a)(1), 4S(m)(I)(A), S3(b), 1681s, and 1691c, and pursuant to the Court's own 

equitable powers: 

(1) Enter judgment against Defendant and in favor of Plaintiff for each 

violation alleged in this Complaint; 

(2) Enter a permanent injunction to prevent future violations of the FCRA and 

the FTC Act by Defendant; 

(3) Award Plaintiff monetary civil penalties from Defendant for each 

violation of the FCRA alleged in this Complaint; 

(4) Order Defendant to pay the costs of this action; and 

(S) Award Plaintiff such other and additional relief as the Court may deem 

just and proper. 

Dated g ,2009 

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OF COUNSEL: 

JOEL WINSTON 

Associate Director 

Division of Privacy and Identity Protection 

REBECCA E. KUEHN 

Assistant Director 

Division of Privacy and Identity Protection 

KATHERINE ARMSTRONG 

Attorney 

Division of Privacy and Identity Protection 

KATE WHITE 

Attorney 

Division of Privacy and Identity Protection 

Federal Trade Commission 

601 New Jersey Avenue, NW 

Washington, D.C. 20001 

FOR THE PLAINTIFF 


UNITED STATES OF AMERICA: 


TONY WEST 


Assistant Attorney General 


Civil Division 


United States Department of Justice 


MICHAEL W. REAP 

Ac.+i"j United States Attorney 

Eastern District Missouri 

ch I A I.. 5U ~'" 

Assistant United States Attorney 

Thomas F. Eagleton US Courthouse 

III South 10th Street 

St. Louis, MO 63102 

314-539-2200 

314-539-2309 (fax) 

EUGENE M. THIROLF 

Director 

Office of Consumer Litigation 

KENNETH L. JOST 

Deputy Director 

Office of Consumer Litigation 

\ 

ttorney 

Office of Consumer Litigation 

U.S. Department of Justice 

PO Box 386 

Washington, D.C. 20044 

202-307-6154 

202-514-8472 (fax) 

Alan.Phelps@usdoj.gov 

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