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August 09, 2002
Eckerd Settles for $1M in Privacy Investigation
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Florida Attorney General Bob Butterworth was investigating allegations that Eckerd violated the state's deceptive trade practices law by using customers' signatures for marketing and other purposes without proper notification.
"The agreement we've reached with Eckerd should serve as a model for other drug retailers to help ensure patient privacy," Butterworth told BenefitsLink. "To its credit, Eckerd ... cooperated fully with our investigation and worked to resolve our concerns and help protect customers."
Jerry Thompson, the company's senior vice president, said Eckerd is "pleased to have amicably resolved this matter. Our patient information and education practices meet or exceed all federal guidelines and industry standards. We believe the information we provide is beneficial to our customers."
In addition to the $1 million dollar endowment to Florida A&M University for an ethics program, Eckerd's settlement with the state of Florida includes:
- refraining from using prescription pickup logs or forms to obtain customer authorization for the use of medical information for marketing purposes.
- restricting direct marketing of prescription drugs to customers who have provided written consent to use their medical information for such purposes
- fully advising customers of the type of medical information that will be disclosed and describing the entities to whom the information will be disclosed
- clearly and conspicuously disclosing who authored and is paying for communications to customers
- providing in every Eckerd communication to customers a free and easy way to withdraw consent to receive such communications.
Federal laws prohibit the use of protected health information for marketing purposes without the express permission of the person in question, BenefitsLink reports.
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