Rite Aid settles privacy disclosure allegations
NEW YORK
Drugstore operator Rite Aid Corporation and its 40 affiliated entities on Tuesday agreed to pay $1 million to settle potential privacy disclosure violations.
The company said it settled with the Department of Health over allegations it violated the Health Insurance Portability and Accountability Act of 1996, also known as HIPAA. The company also said it signed a consent order with the Federal Trade Commission to settle potential violations of the FTC Act.
Rite Aid said it will take actions to safeguard pharmacy customer privacy.
The allegations stemmed from videotaped incidents where pharmacies were shown to have disposed of prescriptions and labeled pill bottles containing individuals' identifiable information in industrial trash containers that were accessible to the public.
Shares of Rite Aid fell 2 cents to 97 cents in afternoon trading.
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