FTC Probes CVS
Your friendly neighborhood drug store--OK, more like the corporate colossus that runs it--is under investigation again. CVS Caremark Corp. announced yesterday that the Federal Trade Commission (FTC) is investigating the company's business practices, according to the Associated Press, but spokespeople did not disclose the details.
The probe may be related to complaints made by the Change to Win coalition, which raised questions regarding CVS' privacy practices, among other concerns. "We think there are serious issues with the company," Change to Win spokesman Ahmer Qadeer told the AP. "We think there's a real question of privacy problems, how they may use patient data, and real questions with this business model."
This isn't the first time CVS has been scrutinized. In February, the FTC and Department of Health and Human Services investigated the company following reports that employees were dumping consumers' private information, including Social Security numbers and medical records, in garbage containers. CVS shelled out a $2.25 million settlement, but continued to deny any wrongdoing.
According to the Wall Street Journal, the company settled a similar investigation by the Texas Attorney General in 2008.