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

Attorney General by the Federal Trade Commission (“FTC”), pursuant to Section 16(a)(1) of the 

Federal Trade Commission Act (“FTC Act”), 15 U.S.C. § 56(a)(1), for its Complaint alleges: 

1. Plaintiff brings this action under Section 13(b) of the Federal Trade Commission 

Act (“FTC Act”), 15 U.S.C. § 53(b), and Section 621(a) of the Fair Credit Reporting Act 

(“FCRA”), 15 U.S.C. § 1681s(a), to obtain injunctive and other equitable relief and monetary 

civil penalties for Defendant’s acts or practices in violation of Section 5(a) of the FTC Act, 15 

U.S.C. § 45(a), and in violation of the Section 609(e) of the FCRA, 15 U.S.C. § 1681g(e). 

JURISDICTION AND VENUE 

2. This Court has subject matter jurisdiction pursuant to 28 U.S.C. §§ 1331, 1337(a), 

1345, and 1355. 

UNITED STATES DISTRICT COURT 

EASTERN DISTRICT OF WISCONSIN 

MILWAUKEE DIVISION 

UNITED STATES OF AMERICA, 

Plaintiff, Civil Action No. 2:20-cv-859 

v. 

KOHL’S DEPARTMENT STORES, INC., 

Defendant. 

COMPLAINT FOR PERMANENT INJUNCTION, OTHER EQUITABLE RELIEF, AND 

CIVIL PENALTIES 

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3. Venue is proper in this District under 28 U.S.C. §§ 1391(b)(1)-(d) and 1395(a), 

and 15 U.S.C. § 53(b). 

PLAINTIFF 

4. This action is brought by the United States of America on behalf of the FTC. 

The FTC is an independent agency of the United States government given statutory authority and 

responsibility by, inter alia, the FTC Act, 15 U.S.C. §§ 41-58, and the FCRA, 15 U.S.C. 

§§ 1681-1681x. The FTC is charged, inter alia, with enforcing Section 5(a) of the FTC Act, 15 

U.S.C. § 45(a), which prohibits unfair and deceptive acts or practices in or affecting commerce, 

and the FCRA, which imposes duties on businesses that have provided credit, goods, or services 

to, accepted payment from, or otherwise entered into a transaction with someone who is believed 

to have fraudulently used another person’s identification. 

DEFENDANT 

5. Defendant Kohl’s Department Stores, Inc. (“Kohl’s”) is a Delaware corporation 

with its principal place of business at N56 W17000 Ridgewood Drive, Menomonee Falls, 

Wisconsin 53051. Kohl’s transacts or has transacted business in this District and throughout the 

United States. 

COMMERCE 

6. At all times material to this Complaint, Defendant has maintained a substantial 

course of trade in or affecting commerce, as “commerce” is defined in Section 4 of the FTC Act, 

15 U.S.C. § 44. 

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FAIR CREDIT REPORTING ACT 

7. 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, and the Dodd-Frank Act amended the FCRA in July 2010. 

8. Section 621 of the 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. 

9. Section 609(e)(1) of the FCRA, 15 U.S.C. § 1681g(e)(1), requires a “business 

entity” to provide an identity theft “victim” with “application and business transaction records” 

evidencing any transaction that the victim alleges to be the “result of identity theft.” The 

business entity must provide such records “not later than 30 days after the date of receipt of a 

request from a victim.” 

10. For purposes of Section 609(e)(1), a “business entity” is an entity that has 

“provided credit to, provided for consideration products, goods, or services to, accepted payment 

from, or otherwise entered into a commercial transaction for consideration with, a person who 

has allegedly made unauthorized use of the means of identification of the victim[.]” 15 U.S.C. 

§ 1681g(e)(1). 

11. Section 609(e)(11), 15 U.S.C. § 1681g(e)(11), defines a “victim” as: 

a consumer whose means of identification or financial information has been used 

or transferred (or has been alleged to have been used or transferred) without the 

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authority of that consumer, with the intent to commit, or to aid or abet, an identity 

theft or a similar crime. 

12. To obtain application and business transaction records of the alleged identity 

theft, the victim must make the request for records in writing and mail it to an address specified 

by the business entity. 15 U.S.C. § 1681g(e)(3). The records must be provided to the victim 

or, if specified or authorized by the victim, a law enforcement agency. 

13. Prior to providing the records, a business entity can require that the victim 

provide: 

A. proof of his or her identity, such as a copy of the victim’s government-issued 

identification card, 15 U.S.C § 1681g(e)(2)(A); and 

B. proof of the claim of identity theft, by providing a police report and a completed 

affidavit, 15 U.S.C. § 1681g(e)(2)(B). 

14. The FTC also has issued guidance on multiple occasions to businesses seeking to 

comply with FCRA Section 609(e). Each guidance document states that businesses must 

provide records directly to victims upon request. 

DEFENDANT’S BUSINESS ACTIVITIES 

15. Kohl’s is a large national department store chain with a significant online retail 

presence through the website, www.kohls.com (“Kohl’s Website”). Among other things, the 

company sells clothing, accessories, beauty goods, and home products. 

16. Prior to February 2017, Kohl’s policy for handling requests for application and 

business transaction records from victims of identity theft, pursuant to Section 609(e) of the 

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FCRA (“609(e) Requests”), was to provide all such records to the victim within 30 days of the 

receipt of a request, after proper verification. 

17. In February 2017, Kohl’s changed its policy for responding to 609(e) Requests 

related to Website orders. Under the new policy (“February 2017 Policy”), Kohl’s would only 

share information identifying the identify thief with law enforcement or with a victim’s attorney, 

upon their direct request. 

18. In August 2018, Kohl’s further revised its policy for responding to 609(e) 

Requests. Under the new policy (“August 2018 Policy”), Kohl’s would provide customers with 

a Kohl’s charge account with a more expansive list of business and transaction records (such as 

statements, receipts, and applications), but Kohl’s continued to refuse to provide detailed order 

information (such as the address and phone number listed on a fraudulent application or the 

shipping address used for fraudulent orders) directly to any customers. In addition, under the 

August 2018 Policy, Kohl’s would no longer provide such detailed information about fraudulent 

orders to victims’ attorneys. According to this policy, victims had a single recourse for 

obtaining such information from Kohl’s: a request directly from law enforcement. 

19. As a result of Kohl’s February 2017 and August 2018 Policies, many victims of 

identity theft were unable to obtain application and business transaction records related to the 

identity theft they suffered. Specifically, Kohl’s informed victims that it was not permitted to 

share such information with anyone other than law enforcement. 

20. In addition, on several occasions, Kohl’s failed to respond to victims—even to 

issue a denial of their request—within 30 days. 

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21. Victims, who expended significant amounts of time submitting and following up 

on 609(e) Requests, repeatedly complained to Kohl’s about its failure to grant their requests. 

Several victims also sent Kohl’s the language of Section 609(e) of the FCRA as well as copies of 

the FTC’s business guidance about 609(e) Requests in an effort to persuade the company to grant 

their requests. None of these efforts prompted any change in Kohl’s policies, despite the fact 

that victims experienced (and repeatedly reported to Kohl’s) significant frustration as a result of 

them. 

22. The August 2018 Policy remained in place until April 2019, when Kohl’s finally 

implemented a policy that required it to provide victims of identity theft with the application and 

business transaction records they requested. 

23. Based on the facts and violations of law alleged in this Complaint, Plaintiff has 

reason to believe that Defendant is violating or is about to violate laws enforced by the Federal 

Trade Commission because, among other things, Kohl’s knowingly engaged in its unlawful acts 

and practices for more than two years (February 2017 through March 2019), Kohl’s continued its 

unlawful acts or practices despite knowledge of numerous complaints from victims of identity 

theft, and Kohl’s only stopped its unlawful conduct six months after it received a Civil 

Investigative Demand from the FTC. 

VIOLATIONS OF THE FCRA 

Count I (Failure to Provide Records) 

24. As described in paragraphs 15-22, in numerous instances, Kohl’s entered into 

commercial transactions with persons who made unauthorized use of the means of identification 

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of victims and failed to provide the required application and business transaction records to 

victims upon request. 

25. By and through the acts and practices described in paragraph 24, Kohl’s has 

violated Section 609(e) of the FCRA, 15 U.S.C. § 1681g(e). 

26. Pursuant to Section 621(a)(1) of the FCRA, 15 U.S.C. § 1681s(a)(1), the acts and 

practices alleged in paragraph 24 also constitute unfair or deceptive acts or practices in violation 

of Section 5(a) of the FTC Act, 15 U.S.C. § 45(a). 

Count II (Failure to Respond Within 30 Days) 

27. As described in paragraphs 15-22, on multiple occasions, Kohl’s entered into 

commercial transactions with persons who made unauthorized use of the means of identification 

of victims and refused to provide the required application and business transaction records not 

later than 30 days after the date of receipt of a request from a victim. 

28. By and through the acts and practices described in paragraph 27, Kohl’s has 

violated Section 609(e) of the FCRA, 15 U.S.C. § 1681g(e). 

29. Pursuant to Section 621(a)(1) of the FCRA, 15 U.S.C. § 1681s(a)(1), the acts and 

practices alleged in paragraph 27 also constitute unfair or deceptive acts or practices in violation 

of Section 5(a) of the FTC Act, 15 U.S.C. § 45(a). 

CONSUMER INJURY 

30. Consumers have suffered and will continue to suffer substantial injury as a result 

of Defendant’s violations of the FCRA and the FTC Act. Absent injunctive relief by this Court, 

Defendant is likely to continue to injure consumers and harm the public interest. 

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THIS COURT’S POWER TO GRANT RELIEF 

31. Section 621(a) of the FCRA, 15 U.S.C. § 1681s(a), and Section 13(b) of the FTC 

Act, 15 U.S.C. § 53(b), empower this Court to grant injunctive and such other relief as the Court 

may deem appropriate in the enforcement of the FTC Act and the FCRA. The Court, in the 

exercise of its equitable jurisdiction, may award ancillary relief, including rescission or 

reformation of contracts, restitution, the refund of monies paid, and the disgorgement of illgotten monies, to prevent and remedy any violation of any provision of law enforced by the FTC. 

32. Section 621(a)(2)(A) of the FCRA, 15 U.S.C. § 1681s(a)(2)(A), authorizes the 

Court to award monetary civil penalties in the event of a knowing violation, which constitutes a 

pattern or practice of violations. Kohl’s violations of Section 609(e) of the FCRA, as alleged in 

this Complaint, were knowing and constituted a pattern or practice of violations. As specified 

by the Federal Civil Penalty Inflation Adjustment Act of 1990, 28 U.S.C. § 2461(a), as amended, 

the Court is authorized to award a penalty of not more than $3,993 per violation for penalties 

assessed after February 14, 2019. 

33. Each instance in which Kohl’s has failed to comply with the FCRA in one or 

more of the ways described above constitutes a separate violation of the FCRA for the purpose of 

assessing monetary civil penalties under Section 621 of the FCRA. Plaintiff seeks monetary 

civil penalties for every separate violation of the FCRA. 

PRAYER FOR RELIEF 

Wherefore, Plaintiff, pursuant to Sections 5(a) and 13(b) of the FTC Act, 15 U.S.C. §§ 

45(a) and 53(b), and Section 621(a) of the FCRA, 15 U.S.C. § 1681s(a), and the Court’s own 

equitable powers, requests that the Court: 

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A. Enter judgment against Defendant and in favor of Plaintiff for each law violation 

alleged in this Complaint; 

B. Enter a permanent injunction to prevent future violations of the FTC Act and the 

FCRA by Defendant; 

C. Award Plaintiff monetary civil penalties from Defendant for each violation of the 

FCRA as alleged in this Complaint; and 

D. Award Plaintiff the costs of bringing this action, as well as such other and 

additional relief as the Court may determine to be just and proper. 

Dated: June 8, 2020 

FOR THE FEDERAL TRADE FOR THE UNITED STATES OF 

COMMISSION: AMERICA: 

WHITNEY A. MOORE JOSEPH H. HUNT 

ELISA JILLSON Assistant Attorney General 

Attorneys Civil Division 

Federal Trade Commission ETHAN P. DAVIS 

Division of Privacy and Identity Protection Deputy Assistant Attorney General 

600 Pennsylvania Ave, NW 

Mail Stop CC-8232 GUSTAV W. EYLER 

Washington D.C. 20580 Director 

Tel: (202) 326-2645; -3001 Consumer Protection Branch 

MATTHEW D. KRUEGER 

United States Attorney 

Eastern District of Wisconsin 

/s/ Speare I. Hodges___ 

Speare I. Hodges 

Trial Attorney 

Consumer Protection Branch 

U.S. Department of Justice 

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P.O. Box 386 

Washington, DC 20044 

(202) 532-0295 

Speare.I.Hodges@usdoj.gov 

Michael A. Carter 

Assistant United States Attorney 

Wisconsin Bar No. 1090041 

United States Attorney’s Office 

Eastern District of Wisconsin 

517 E. Wisconsin Ave., Suite 530 

Milwaukee, WI 53211 

414-297-4101 

Michael.A.Carter@usdoj.gov 

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