FTC Approves Final Order Settling Charges that Rite Aid Failed to Protect Medical and Financial Privacy of Customers and Employees

  • Date: November 25, 2010
  • Source: Admin
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Rite Aid Corporation, charged with failing to protect its customers’ and employees’ sensitive and financial privacy, received a final order approved by the Federal Trade Commission (FTC) to settle charges. Members of the public who put forward commends on the order received letters from the FTC. In line with the order, Rite Aid is obligated to ensure several measures. This includes setting up a comprehensive information security program that will protect the integrity, confidentiality, and security of the personal information collected from employees and customers.
The FTC vote approving the final order was 5-0. (FTC File No. 0723121; the staff contact is Kristin Cohen, Bureau of Consumer Protection, 202-326-2276).
About the Federal Trade Commission
FTC works for American consumers, protecting their economic lives by identifying and preventing fraudulent, deceptive, and unfair business practices. T practices law enforcement and enhances consumer’s interests through policy and research tools development, sharing expertise with the U.S. federal and state legislatures and international government agencies, and creating educational programs on frequently changing technologies for businesses and consumers.
History of the case
Rite Aid operates the third largest pharmacy chain in the United States, with some 4,900 retail pharmacies as well as an online pharmacy.
The FTC brought up charges against Rite Aid Corporation in that it failed to protect the medical and financial information (deemed sensitive) of its employees and consumers. This is in violation of federal law. In a related action, separate from this, the pharmacy chain of the company agreed to pay $1 million to resolve the allegations of the Department of Health and Human Services (HHS) that it did not protect sensitive health information of customers.
Other FTC Cases
Recently, FTC settled a case that involved shutting down a website operation that allegedly advertized free government grants (scam) to pay off debt or to use in personal expenses, and then made unauthorized debits from consumers’ bank accounts. The federal government does not provide grants to consumers for personal expenses or paying off debts.
In another case, the FTC warned the public about scam sites used for social networking and online dating, urging customers to send money. Typically, a fake profile is created to begin an online love interest. The person is then scammed into sending money to a location outside the U.S, thus swindling money from the love interest.



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