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Member, Beacon International Group, Ltd.
An individual can sue a website operator under the Fair Credit Reporting Act for publishing inaccurate personal information about him without having to prove actual harm, an appeals court has ruled.
Thomas Robins alleged in his lawsuit that Pasadena, Calif.-based Spokeo Inc., which describes itself on its website as a “people search utility,” published inaccurate information about him that harmed his employment prospects, according to Tuesday's ruling by the 9th U.S. Circuit Court of Appeals in San Francisco in Thomas Robins, individually and on behalf of all others similarly situated v. Spokeo Inc.
The website allegedly described Mr. Robins as holding a graduate degree and as wealthy, both of which Mr. Robins said were untrue. He alleged that his unemployment cost him money as well as anxiety and stress.
In a complex legal process, the U.S. District Court in Pasadena, Calif., issued three rulings in the case. The third ruling dismissed the lawsuit on the grounds that any injuries claimed by Mr. Robins were not traceable to Spokeo's alleged violations.
Spokeo contended that “Robins cannot sue under the (Fair Credit Reporting Act) without showing actual harm. But the statutory cause of action does not require a showing of actual harm when plaintiff sues for willful violations,” a three-judge 9th Circuit panel ruled in overturning the lower court’s dismissal.
“When, as here, the statutory cause of action does not require proof of actual damages, a plaintiff can suffer a violation of the statutory right without suffering actual damages,” the court ruled in remanding the case for further proceedings.