CVS Caremark Settles FTC Charges that It Failed to Protect Medical and Financial Privacy of Customers and Employees; CVS Pharmacy Also Pays $2.25 Million Fine to DHS

FTC: CVS Caremark has agreed to settle Federal Trade Commission charges that it failed to take reasonable and appropriate security measures to protect the sensitive financial and medical information of its customers and employees, in violation of federal law. In a separate but related agreement, the company’s pharmacy chain also has agreed to pay $2.25 million to resolve Department of Health and Human Services allegations that it violated the Health Insurance Portability and Accountability Act (HIPAA). ... "This is a case that will restore appropriate privacy protections to tens of millions of people across the country," said William E. Kovacic, Chairman of the Federal Trade Commission. "It ... sends a strong message to other organizations that possess consumers' protected personal information. They are required to secure consumers' private information."

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