09/10/04 FRI 10:07 FAX 202 326 3629 , FEDERAL TRADE Mo12

receipt of a copy of this Consent Decree, and shall, within ten (10) days of complying with this
paragraph, file an affidavit with the Court, and serve the Federal Trade Commission, by mailinga
copy thereof to the Associate Direetor for Financial Practices, Bureau of Consumer Protection,
Federal Trade Commission, Washington, D.C. 20S80,’serting forth the fact and mannet of their
compliunce, including the name and title of och person to whom a copy of the Consent Decree
has been provided. ; /

9. Fora period of five.(5) years from the date of eniry of this Consent Decres,
defendant, and its suecessors and assigns, shall maintain and make available to the Federal Trade
Commission, within fifteen (15) days of the receipt of a written request, business records
demonstrating compliance with the terms and provisions of this Consent Decree. The foregoing
shall require: defendant to maintain teasonable records including, but not limited to, the forms of
potices sent ta consumers, and the number of each’ ‘notice Sent te to consumers, but shall; nat Tequire
defendant to identify the consumers to whom patticular notices were sent.

10, Defendant, and its successors and assigns, shall notify the Associate Director for
Financial Practices, Bureau of Consumer Protection, Federal Trade Commission, Washington,
D.C. 20580, af least thirty (30) days prior to any change in defendant’s business, including, but
not limited to, merger, incorporation, dissolution, assignment, and sale, which results in the
emergence of a successor corporation, the creation or dissolution of a subsidiary or parent, or any
other change, which may affect defendant’s obligations under this Consent Decree. ;

V1, Defendant is hereby required, in accordance with 31 U.S.C. § 7701, to fumish to

the Federal Trade Commission its taxpayer identifying numbers, which shall be used for

Consent Decree _ Page Sof 8


09/10/04 FRI 10:09 FAX 202 326 3629

FEDERAL TRADE

Ronald G. Isaac, Attorney

Sandra Farrington, Attoy

on A Z : Yer
Eric Imperial, Attomey ° °
Division of Financial Practices
Bureau of Consumer Protection
Federal Trade Commission

Washington, D.C, 20580
. (202) 326-3231 : ‘

FOR THE DEFENDANT:

AT&T CORP.

PEA Z the bevale ,
Chester Oldakowski

Director of Consumer Operations

, Attomey ’

\_-Sidley, Austin, Brown & Wood LLP
- 1501 K Street, N.W.
Washington, D.C. 20005
Attorneys for Defendant

Consent Decree. Page 8 af 8

jos


09/10/04 FRI 10:07 FAX 202 326 3629 FEDERAL TRADE Moi

the adverse action and is unable to provide the consumer the specific reasons why the adverse’ *
action was taken; and (4) notice of the consumer’s right: ,

' « (A) to obtain, under Section 612 of the FCRA, 15 U.S.C. § 1681j, within 60 days
after receiving notice of the adverse action, a free copy of the consumer report
from the consumer reporting agency from which the report wa ‘wbtained and -

- @) to dispute, under Section 611 of the FORA, 15 U.S.C. § 1681i, with a

_ Songumer reporting agency the accuracy or completeness of any information in a

conaumer report furnished by the agency,

as required by Section 615(a) of the FCRA, 15 U.S.C: § 1681m(a), as amended.
Notwithstanding the! foregoing, if defendant's obligations with respect to Section 615(@) of the
FCRA are modified as a result of a statutory or regulatory change effective after the date of this
Consent Decree, then compliance with such obligations as 50 modified shall constitute
compliance with Paragraph 7 of this Consent Decree,

; b, Defendant shall not be held liable for a violation of Paragraph 7 of this
Consent Decree if it shows by a preponderance of the evidence that at the time of the alleged
violation, defendant maintained reasonable procedures to assure compliance with the provisions
of Paragraph 7, .

& Defendant, and its successors wud assigns, shall within thirty (30) days of the entry
of this Cunucnt Decree, provide a copy of this Consent Dectee to each of their officers, agents,
servants, employees, and attomeys having decision-making authority with respect to the subject

matter of this Consent Decras, seoure from each such person a signed statement acknowledging |

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09/10/04 FRI 10:08 FAX 202 326 3629 FEDERAL TRADE @o13

12. This Court shall retain jurisdiction of this matter for the purposes of enabling any of
the partes to this Consent Decree to apply to the Cowt at any time for such further order or . °
directives as may be necessary of appropriate for the interpretation or modification of this Consent
Decree, for the enforcement of compliance therewith, or for the punishment of violations thereof,
or as justice may require, ' :
JUDGMENT 8 ‘THEREFORE ENTERED jn favor of plaintiff and against defendant,

pursuant to all the terms and conditions recited above, :

Dated this day of , 2004.

me

7 , ol
UNITED STATES DISTRICT JUDGE
‘The parties, by their respective counsel, hereby consent to the terms and conditions of the
Consent Decree 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, amended by Pub. L. 104-

121, 110 Stat., 847, 863-64 (1996).
FOR THE UNITED STATES OF AMERICA.

JEFFREY S. BUCHOLTZ

Acting Assistant Attomey General
Civil Division

United States Department nf Justice

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09/10/04 FRI 10:06 FAX 202 326 3629 FEDERAL TRADE Zoos

‘ ‘ . EGE ED CLERK
CHRISTOPHER J. CHRISTE . 3, DISTRICT COURT
United States Attorney :
SUSAN J. STEELE © sot . THY SEP -9 Po 2 uf
Assistant United States Attorney

970 Broad Sttect, Suite 700 mo :
Newark, New Jersey 07102 _ . : . . °

(973) 645-2920 a “
8387042 .
"UNITED STATES DISTRICT:COURT
FOR.THE DISTRICT OF NEW JERSEY
. y
UNITED STATES OF AMERICA )
. . ' )
. Plaintiff, )
v. ) Civil No.
; 7)
AT&T CORP. )
‘ )
Defendant. )
; ; _)
CONSENT DECREE ,

WHEREAS: Plaintiff, the Usiited States of America, has commenced this action
by filing the Complaint herein; defendant has waived service of the Summons and Complaint;
the parties have been Tepresented by the attorneys whose names appear hereatter; and the parties
have agreed to settlement of this action,upon the following terms and conditions, without
adjudication of any issue of fact or law and without defendant admitting liability or fault for any
of the matters allaged in the Complaint: , =

THEREFORE, on the joint motion of plaintiff and defendant, it is hereby ORDERED,
ADIUDGED, AND DECREED as follows:

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09/10/04 FRI 10:08 FAX 202 326 3629 FEDERAL TRADE @o14

CHRISTOPHER J. CHRISTIE
United States Attomey :
District of New Jersey

Fsds. Dees
Assistant United States Attomey

EUGENE M. THIROLF . ; :
Director . , "
Office of Consumer Litigation

ELIZABETH STEIN

Attorney yim

Office of Consumer Litigation

Civil Division . fn)
U.S. Department of Tustice

Washington, D,C, 20530

FOR THE FEDERAL TRADE COMMISSION:

Jogf C\ Winston.

Assosiate Director far Financial Practices
Bureau of Consumer Protection
Federal Trade Commission

Bradley H. Bibwer ] .

Assistant Director for Financial Practices’,
Bureau of Consumer Protection
Federal Trade Commission

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09/10/04 FRI 10:06 FAX 202 326 3629 FEDERAL TRADE . oo
. ' :

1 This Court has jurisdiction of the subject matter ana of the parties.

2 The Complaint states aclaim upon which relief may be granted against the :
defendant under Sections 5(@)(1), 13(b), and 16(a) of the Federal Trade Commission Act ("FTC
Act!), 15 U.S.C. §§ -45(a)(1), $5(6) and 56(a), and under the Pair Credit Repoiting Act
(FCRA”), 15 US.C.58 1681-16810, ‘This Consent Decree is for settlement purposes only and
does not constitute an admission hy defendant that the law has been violated as alleged i in the
Complaint, or that the facts as alleged in the Complaint, other than the jurisdictional facts, are
true, Defendant denies that it has violated the law and denies all allegations in the Complaint,
other than the jurisdictional facts. a,

3. As used in this Consent Deoreé:
‘a “Pair Credit Reporting Act” or “FORA” refers to 15 U.S.C. §§ 1681-
1681u, as amended; ,
“b “Consumer,” “consumer report,” and “consumer reporting agency” mean
the terms as defined in Section U3 of the FCRA, 15 U.S.C. § 1681a, as
, amended; ~ :
a “Adverse action” menns the term os defined in Section 603 of the FCRA,
, ISTLS.C. § 16814,
| GIVILPENALTYES
4. Defendant AT&T Corp,, its successors and assigns, sbal) pay to plaintiff a civil

penalty, pursuant to Section 621(a) of the FCRA, 15.U.S.C. § 1681s(a), in the amount of |

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09/10/04 FRI 10:06 FAX 202 326 3629 FEDERAL TRADE @o1o

$365,000,
5“ ” Defendant shall make the payment required by Paragraph 4 within ten (10) days of
the date of entry of this Consent Decree by electronic fund transfer in accordance with
instructions Provided by the Ottice of Consumer Litigation, Civil Diviston, US. Depa of
Justice, Washington, Dc 120530, for appropridtc disposition. ;
6. In the event of any. default i in payment, which default continues for ten (10) aaye =
beyond the due-date of ‘payment, the entire umpaid 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. ;
INJUNCTION
7. a. Deferidant, its successors and assigns, and its officers, agents, servants,
employees and attorneys, and all persons in active concert or participation with any one or more
of them who réceive actual notice of this Consent Decrea by personal service or otherwise, are
hereby enjoined, directly or through any corporation, subsidiary, division or other device, from
failing to provide ta a consumer wha has requested, or has received, telephone service from
defendant, whenever defendant lias taken adverse action with respect to that consumer that is
based in whole or in part on any information contained in a consumer report, with: (1) notice of
’ the adverge aution taken; (2) the name, address, and telephone nuinber of the consumer reporting
agency (including a toll-free telephone number established by the agency if the agency compiles
and maintains files on consumers on a nationwide basis) from which the consumer report was

"obtained; (3) a statement that the consumer reporting agency did not make the decision to take

Consent Decree Page 31