Big Pharma

Louisiana Attorney General Investigates CVS for Alleged Misuse of Customer Data in Lobbying Efforts

Louisiana's Attorney General Liz Murrill has initiated an investigation into CVS to determine whether the retail chain has been misusing personal information from customers to send texts against recently proposed state legislation. Murrill also intends to issue a cease-and-desist letter to prevent further text messages from the company, as reported by ABC News.

During a legislative hearing on Wednesday, images of the texts sent by CVS were shared, showcasing warnings about the consequences of the failed bill. One such text stated, "Last minute legislation in Louisiana threatens to close your CVS Pharmacy — your medication cost may go up and your pharmacist may lose their job." The bill in question aimed to prevent companies from both owning drug stores and pharmacy benefit managers, which would have had significant repercussions for CVS, given that it operates both retail pharmacies and CVS Caremark, a leading pharmacy benefit manager in the U.S.

CVS Caremark and similar firms act as intermediaries, acquiring prescription medications from manufacturers and setting the distribution conditions for customers. A 2024 report by the Federal Trade Commission raised concerns about these pharmacy managers profiting by artificially inflating drug prices and negatively affecting local pharmacies.

In its text messages, CVS provided links to a draft letter urging lawmakers to reject the proposed legislation. The letter articulated concerns about its potential to hinder patient access to medications and disrupt specialty pharmacy care for individuals with severe health conditions like cancer or organ transplants. This aspect resonated with State Representative Dixon McMakin, who accused CVS of using "scare tactics" to bolster opposition against the bill.

Murrill's statement highlighted that CVS contacted a significant number of state employees and their families with these messages. In response, CVS spokesperson Amy Thibault remarked that the bill, identified as HB 358, emerged without public hearings, and they felt compelled to alert their customers about legislation that could negatively impact their pharmacies. Thibault emphasized CVS's commitment to serving Louisiana's residents by lowering drug costs and enhancing access to care while expressing eagerness to collaborate with policymakers.

Ultimately, the bill failed to progress in the state Senate, with no plans for further consideration in the upcoming 2025 session.

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