During the final days of the 2009 – 2010 legislative session, California Governor Arnold Schwarzenegger signed Senate Bill 9091 (“SB 909”) into law.2 SB 909 will require additional disclosures by investigative consumer reporting agencies, as well as by employers who procure investigative consumer reports on job applicants or employees.

Under California law, an “investigative consumer report” refers to a consumer report in which information on a “consumer’s character, general reputation, personal characteristics, or mode of living” is obtained through any means.3 Notably, this is broader than the corresponding term under the federal Fair Credit Reporting Act, which is limited to such reports obtained through personal interviews with friends, neighbors, and business associates.4

IMPLICATIONS FOR INVESTIGATIVE CONSUMER REPORTING AGENCIES

1) Publication of privacy practices of investigative consumer reporting agencies. Effective January 1, 2011, an investigative consumer reporting agency operating in California will be required to post information on its website regarding its privacy practices. If the investigative consumer reporting agency does not have a website, it can comply with SB 909 by mailing a comparable written statement of its privacy practices to consumers upon request.

The privacy statement “shall conspicuously include,” but need not be limited to, the following content...