True or False: In the employment context, a consumer authorization must be in writing.

In the employment context, the requirement for a consumer authorization to be in writing is grounded in the Fair Credit Reporting Act (FCRA). The FCRA mandates that when an employer seeks to obtain a consumer report for employment purposes, they must secure written authorization from the consumer (the job applicant or employee). This written consent is not just a formality; it serves to ensure that the consumer is fully aware that their credit report or background data may be used in the hiring process and has consented to this action.

Obtaining a written authorization provides legal protection for the employer and the consumer. It allows for transparency in the employment screening process and ensures that consumers have control over their personal information. The written authorization must also be clear and conspicuous, meaning it should be easy to understand and not buried in fine print or misleading language.

Options such as stating that this requirement is only for certain types of employment or dependent on state law are misleading because the FCRA's mandate for written authorization applies broadly across the employment context, regardless of the type of position being filled. While some states may have additional regulations that provide further consumer protection, the core requirement for written authorization is established at the federal level.