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ARTICLE · 27 FEBRUARY 2017

Nothing Crafty About Michaels' Disclosure Under Spokeo

A New Jersey District Court followed Spokeo's Article III standing analysis and dismissed claims by three putative class representatives against Michaels Stores.

United StatesLitigation, Mediation & Arbitration

A New Jersey District Court followed Spokeo's Article III standing analysis and dismissed claims by three putative class representatives against Michaels Stores. Plaintiffs claimed that Michaels' online employment application violated the Fair Credit Reporting Act (FCRA) and similar New Jersey and California state laws by failing to provide notice of the store's intent to obtain a background check in a dedicated, stand-alone document. Plaintiffs conceded their applications contained a disclosure about Michaels' intent to gather background information. Plaintiffs asserted, however, that since the disclosure did not comport with the FCRA "stand-alone requirement," their consent was not properly obtained. Notably, Michaels had hired all three plaintiffs, and they did not allege any harm aside from the statutory violation.

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