Chapter 874 Oregon Laws 1999

Session Law

AN ACT

HB 2520

Relating to prescription drugs.

Be It Enacted by the People of the State of Oregon:

SECTION 1. A person shall not sell, market, promote, advertise or otherwise distribute any card or other purchasing mechanism or device that is not insurance that purports to offer discounts or access to discounts from pharmacies for prescription drug purchases when:

(1) Such card or other purchasing mechanism or device does not expressly state in bold and prominent type, prominently placed, that the discounts are not insurance;

(2) Such discounts are not specifically authorized by an individual and separate contract with each pharmacy listed in conjunction with the card or other purchasing mechanism or device; or

(3) The discounts or access to discounts offered, or the range of discounts or access to the range of discounts offered, are misleading, deceptive or fraudulent.

SECTION 2. (1) The Attorney General or a person, firm, trade association, private corporation or municipal or other public corporation may maintain an action to enjoin any act in violation of sections 1 to 3 of this 1999 Act and for the recovery of damages.

(2) An action for violation of sections 1 to 3 of this 1999 Act may be brought:

(a) In the county where the plaintiff resides;

(b) In the county where the plaintiff conducts business; or

(c) In the county where the card or other purchasing mechanism or device was sold, marketed, promoted, advertised or otherwise distributed.

(3)(a) If the court finds that the defendant has violated any of the provisions of sections 1 to 3 of this 1999 Act, the court shall enjoin the defendant from continuing the acts that are in violation of sections 1 to 3 of this 1999 Act.

(b) It is not necessary, except to recover for actual damages under paragraph (c)(B) of this subsection, that actual damages to the plaintiff be alleged or proved in order to maintain an action under this section.

(c) In addition to injunctive relief, the plaintiff in the action shall be entitled to recover from the defendant:

(A) $100 per card or other purchasing mechanism or device sold, marketed, promoted, advertised or otherwise distributed within this state, or $10,000, whichever is greater;

(B) Three times the amount of the actual damages, if any, sustained;

(C) Reasonable attorney fees;

(D) Costs; and

(E) Any other relief that the court deems proper.

(4) An action under this section shall be commenced within two years after the date on which the violation of sections 1 to 3 of this 1999 Act occurred or within two years after the person bringing the action discovered, or in the exercise of reasonable diligence should have discovered, the occurrence of the violation of subsections 1 to 3 of this 1999 Act. The period of limitation provided in this subsection may be extended for a period of 180 days if the person bringing the action proves by a preponderance of the evidence that the failure to timely commence the action was caused by conduct of the defendant that was solely calculated to induce the plaintiff to refrain from or postpone commencement of the action.

(5) The remedies prescribed in this section are cumulative and in addition to any other applicable criminal, civil or administrative penalties.

SECTION 3. Any person who sells, markets, promotes, advertises or otherwise distributes any card or other purchasing mechanism or device that is not insurance that purports to offer discounts or access to discounts from pharmacies for prescription drug purchases in this state shall designate a resident of this state as an agent for service of process and register the agent with the Secretary of State.

SECTION 4. Nothing in sections 1 to 3 of this 1999 Act shall be construed to apply to:

(1) Eye or vision care services, glasses or contact lenses provided by an optometrist or ophthalmologist;

(2) A benefit administered by a health insurer, or health care service contractor or health maintenance organization as defined by ORS 750.005;

(3) A benefit administered by, or under contract with, the State of Oregon; or

(4) A customer discount or membership card issued by a store or buying club for use at that store or buying club.

SECTION 5. If any provision of sections 1 to 3 of this 1999 Act or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of sections 1 to 3 of this 1999 Act that can be given effect without the invalid provision or application, and to this end the provisions of sections 1 to 3 of this 1999 Act are declared to be severable.

Approved by the Governor July 28, 1999

Filed in the office of Secretary of State July 28, 1999

Effective date October 23, 1999

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