Procedural FCRA Violation Without Harm Is Insufficient For Standing, 9th Circuit Rules

The U.S. Court of Appeals for the Ninth Circuit held on July 13 that procedural violations of the Fair Credit Reporting Act without actual harm were insufficient to confer Article III standing. The court found in Dutta v. State Farm that, to establish standing, plaintiffs had to show that these violations actually harmed, or created a material risk of harm for them, making it more difficult for plaintiffs to succeed on such claims.

The Fair Credit Reporting Act

Congress enacted the FCRA to "ensure fair and accurate credit reporting, promote efficiency in the banking system, and protect consumer privacy." Safeco Insurance Company of America v. Burr (2007). The FCRA was intended to protect the privacy rights of job applicants and consumers seeking credit and insurance and to promote the correction of any errors in their consumer reports by providing them with notice that the consumer reports would be used. When consumer reports are used in the employment context,