WASHINGTON (Legal Newsline) – The Federal Trade Commission (FTC) announced that, after a public comment period, it has approved a final order that resolves allegations Henry Schein Practice Solutions Inc. falsely advertised the level of encryption it provided to protect patient data.
The FTC alleged that Schein marketed its Dentrix G5 software to dental practices with claims that it provided encryptions for sensitive patient data that met industry standards. According to the FTC, these claims were false. The level of encryption actually did not meet regulatory obligations as mandated by the Health Insurance Portability and Accountability Act (HIPAA).
Under the settlement, which was first announced in January, Schein will have to pay $250,000 to the FTC. Additionally, the company cannot mislead consumers about the level of encryption it provides. It cannot deceive these consumers about whether its products ensure regulatory compliance to federal laws.
Schein has been mandated to notify consumers who purchased Dentrix G5 during the period of alleged misleading advertising. It must provide the FTC with reports on how the notification program is going.
The FTC voted 3-0 to approve the final order and letters to commenters.