What must employers do when taking adverse action based on a consumer report?

When employers take adverse action based on a consumer report, they are required to notify the consumer of the action taken. This is mandated by the Fair Credit Reporting Act (FCRA), which aims to ensure transparency and protect individuals' rights when their information is used in decision-making processes, such as employment.

This notification is crucial because it informs the consumer that their consumer report influenced the decision, providing them with an opportunity to understand the basis of the action and to take any necessary steps in response. While other options may seem relevant, such as providing all information from the report or offering a chance to explain discrepancies, the primary legal requirement is simply to notify the consumer of the adverse action. Therefore, this answer reflects the essential step that employers must take according to the regulations outlined in the FCRA.