Change to Win: CVS Settles with California Attorney General over Allegations of Selling Expired Products, Failure to Adequately Protect Confidential Information

Brown`s Actions May Bring an End to Practices Publicly Exposed by Change to
Win`s Cure CVS Initiative
WASHINGTON--(Business Wire)--
CVS Caremark Corporation has agreed to pay almost $1 million to settle
allegations of misleading customers and unfair business practices stemming from
the sale of expired products including baby food and over-the-counter
medications. CVS has also agreed to settle charges that it failed to adequately
protect and dispose of customers` confidential personal and medical information.

Findings released today by the office of California Attorney General Edmund G.
Brown Jr. were similar to those discovered by Change to Win`s Cure CVS
investigation in California. Change to Win forwarded evidence to General Brown`s
office as part of its efforts to reform CVS`s practices.

"CVS has demonstrated that it is either unwilling or unable to adequately
protect private consumer data and protect consumers from the potential dangers
of expired products. We applaud the California Attorney General for taking
action to protect Californians from CVS`s retail practices. There`s no reason
why CVS shouldn`t adopt new corporate policies based on the stipulations of this
settlement," said Chris Chafe, Executive Director of Change to Win. Change to
Win is engaged with community partner organizations to reform the drugstore
industry, starting with CVS, the country`s largest drugstore chain and leading
provider of prescription drugs.

CVS Caremark`s Failure to Protect Confidential Information

CVS Caremark also paid a $2.25 million settlement with the Federal Trade
Commission and the Department of Health and Human Services in February 2009
after a joint agency investigation of patient and consumer privacy violations.
Improperly dumped consumer financial and medical information can expose
consumers to identity theft and harassment and enable prescription theft and
abuse, according to the FTC.

The Texas Attorney General brought suit in 2007 after determining CVS Caremark
had dumped more than 1,000 customers` records - including names, addresses,
dates of birth, types of medications, and credit card numbers - into a garbage
container outside a CVS store. CVS Caremark agreed to settle the Texas complaint
by agreeing to "overhaul" its information security program, train its employees
on privacy procedures, and conduct regular inspections of its stores` patient
information disposal practices. However that agreement only applies in Texas.

The Indiana Attorney General filed similar complaints against CVS with the
Indiana State Board of Pharmacy, alleging improper disposal of patient records
that included treatment information and other personal information.

The New York Attorney General has filed suit against CVS over selling expired
products.

CVS`s Problems with Expired Goods, Patient Privacy Widespread

Change to Win has conducted surveys in more than 2,200 CVS stores in 21 markets
and has uncovered a pattern among CVS stores of selling expired products and
inadequately protecting confidential information, among other issues. Cure CVS:
From Low Quality to High Prices, How CVS is Failing Our Communities is available
at www.CureCVSNow.org.

Cure CVS is an initiative by Change to Win and partner organizations to reform
the drugstore industry, starting with CVS, the country`s leading provider of
prescription drugs and largest drugstore chain. By joining concerned citizen
groups with the six million members of Change to Win unions, Cure CVS aims to
ensure that CVS provides equal access across all communities and income levels
to its stores and services, offers fair and accurate prices, provides quality
products and services, protects customers` privacy and puts quality pharmacy
care first.

Change to Win
Gina Bowers, 202-288-0257

Copyright Business Wire 2009