Kohl’s (KSS) has settled a lawsuit with the Federal Trade Commission (FTC) for $220,000 over allegations that it violated the Fair Credit Reporting Act. The FTC claims that Kohl’s refused to provide complete consumer transaction records for those customers that had their personal information used by identity thieves.

The U.S. Department of Justice filed the lawsuit against Kohl’s on behalf of the FTC, which alleges that the retailer did not provide information identifying the thieves to identity theft victims, regardless of the fact that the Fair Credit Reporting Act guarantees access to this information for consumers.

In its complaint, the FTC also contended that the information was not provided in 30 days as required by the act. Information being requested by identity theft victims included sales made by identity thieves using stolen personal information, as well as the name of the identity thief, and their contact information.

“If someone stole your identity, it’s your right to get the records related to the theft – and that’s a right the FTC takes seriously,” Andrew Smith, director of the FTC’s Bureau of Consumer Protection, said in a statement. “This case is a warning to other companies: We will hold you responsible if you fail to give identity theft victims the required business records.”

Kohl’s is required to pay the $220,000 fine as well as provide identity theft victims access to sales transaction records related to theft within 30 days. The company is also required to post a notice on its website about how to obtain records related to identity theft from the retailer and notify consumers, who were previously denied access to these records.

This is the first case that the FTC has brought against a violation of the Fair Credit Reporting Act.

Shares of Kohl's stock were down 11.19% as of 3:45 p.m. EDT on Thursday.

Kohl's
The sign outside the Kohl's store in Westminster, Colorado, on Aug. 14, 2008. Reuters
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