Penalty Amount
$235,000
Consumers Affected
9,700
Wakefern Food Corp. and associated ShopRite entities settled allegations that they improperly disposed of electronic devices containing protected health information, potentially exposing the data of over 9,700 New Jersey residents. They agreed to pay $235,000 and implement comprehensive data security measures including appointing privacy officers and providing training.
Wakefern agreed to pay $235,000, appoint a chief privacy officer, execute business associate agreements, designate HIPAA officers at all ShopRite pharmacies, and provide online training. Union Lake and SRS agreed to provide written assurances of officer designation and training completion.
In-house legal teams should review vendor agreements (especially with third-party disposal or technology service providers), customer agreements related to pharmacy or health services, and any data processing agreements. Key clauses to scrutinize include data disposal procedures, security safeguards for protected health information (PHI), breach notification obligations, HIPAA compliance representations, and requirements for appointing privacy officers. Changes may be needed to mandate secure disposal methods (e.g., data wiping or physical destruction), require vendors to provide certification of disposal, incorporate specific training obligations, and strengthen audit rights to verify compliance with HIPAA and state data security laws.
Entity
Wakefern Food Corp., Union Lake Supermarket, LLC, ShopRite Supermarkets, Inc.
Also known as: Wakefern
Industry
HealthcareOfficial Press Release
https://www.njoag.gov/ag-grewal-announces-shoprite-wakefern-to-pay-235000-and-improve-data-security-in-settlement-over-privacy-lapses-at-supermarket-pharmacies-improper-disposal-of-electronic-signing-devices-from-superm/
Wakefern Food Corp. Consent Order
https://www.nj.gov/oag/newsreleases20/Wakefern-Food-Corp.-Consent-Order.pdf
New Jersey Attorney General Enforcement Page
https://www.njoag.gov/about/divisions-and-offices/division-of-consumer-affairs/
"Wakefern, based in Keasbey, NJ; Union Lake Supermarket, LLC (“Union Lake”), which own the Shoprite store in Millville; and ShopRite Supermarkets, Inc. (“SRS”), which owns the Shoprite store in Kingston"
"pay $235,000"
"Health Insurance Portability and Accountability Act (HIPAA)"
"New Jersey Consumer Fraud Act (CFA)"
"failing to properly dispose of electronic devices used to collect the signatures and purchase information of pharmacy customers"
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