Pharmacy
Rite Aid CorporationInformation and Alerts
Alert Details
This business has 1 alert.
Government Actions
Federal Trade Commission v. Rite Aid Corporation
The following describes a government action that has been resolved by either a settlement or a decision by a court or administrative agency. If the matter is being appealed, it will be noted below.
On December 19, 2023, the firm entered into a Stipulated Order for Permanent Injunction and Other Relief with the Federal Trade Commission (FTC) prohibiting it from using facial recognition technology for surveillance purposes for five years to settle FTC charges that it allegedly failed to implement procedures and prevent harm to consumers in its use of facial recognition technology in hundreds of stores. According to the FTC, the firm allegedly misused facial recognition technology in a way that subjected shoppers to unfair searches, did not inform consumers that it was using the technology in its stores, and the facial recognition software was mostly deployed in neighborhoods with large Black, Latino, and Asian communities.
As part of the settlement to resolve allegations that alleged violations of the Federal Trade Commission Act and to settle charges it violated a data security Order the Commission previously issued in 2010 for allegedly failing to adequately oversee its service providers, the firm must implement safeguards to prevent these types of harm to consumers when utilizing automated systems that use biometric information to track them or flag them as security risks, require it to discontinue using any such technology if it cannot control potential risks to consumers, and it will also be required to implement an information security program, which must be overseen by company executives.
The stipulated order was for settlement purposes only and should not be considered as an admission of guilt or finding of violation of the law.
Important Information
Additional Info
On 05/08/2025, the business filed for reorganization under Chapter 11 of the federal Bankruptcy Act, case# 23-18993. This permits the business to continue to operate with court supervision while developing a plan of reorganization. Those with monetary claims against the business are advised to obtain a Proof of Claim form by writing to US Bankruptcy Court of New Jersey 50 Walnut St #3017 Newark NJ 07102 for resubmission to that court. The case number should be entered on the form.
Pending Government Action
The following describes a pending government action that has been formally brought by a government agency but has not yet been resolved. We are providing a summary of the government's allegations, which have not yet been proven.
On December 21, 2022, the Washington Attorney General Consumer Protection Division (WAG) filed a complaint against Rite Aid Corporation for violating the state’s Consumer Protection Act and public nuisance laws. Specifically, the lawsuit alleges that the pharmacies collectively ignored federal regulations and repeatedly filled prescriptions for controlled substances with obvious red flags that did not meet legal requirements, and intentionally deleted internal notes about suspicious prescribers contributing to the opioid crisis in communities across the state. The lawsuit also claims the company had the data to monitor and dispense prescriptions safely but failed to provide that information to its pharmacists, failed to report suspicious orders or prescriptions, and tied pharmacists’ pay to how fast they filled prescriptions, hindering pharmacists from checking that a prescription was safe for customers.
The WAG asks the court to find the company in violation of the law, permanently enjoin it from violations in the future, and seeks restitution, injunctive relief, civil penalties, disgorgement, and costs of the investigation. For more information on this action, please visit:
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