South Ogden CVS Store, Inc. v. Ambach

493 F. Supp. 374, 1980 U.S. Dist. LEXIS 11773
CourtDistrict Court, S.D. New York
DecidedJune 12, 1980
Docket79 Civ. 2607 (WCC)
StatusPublished
Cited by9 cases

This text of 493 F. Supp. 374 (South Ogden CVS Store, Inc. v. Ambach) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
South Ogden CVS Store, Inc. v. Ambach, 493 F. Supp. 374, 1980 U.S. Dist. LEXIS 11773 (S.D.N.Y. 1980).

Opinion

OPINION AND ORDER

CONNER, District Judge:

This is an action for injunctive and declaratory relief pursuant to 28 U.S.C. §§ 2201 and 2202 and 42 U.S.C. § 1983. Plaintiff is a retail drug, health and beauty aid store in Buffalo, New York, registered as a licensed pharmacy under New York Education Law § 6806. Defendants are members of the Board of Regents of the State University of New York, charged with supervision of pharmacies under New York Education Law § 6506; the Commissioner of Education of the State of New York, who administers the practice of the profession of pharmacy under the direction of the Board of Regents; and the Executive *375 Secretary of the New York State Board of Pharmacy, who enforces the regulations of the Board of Regents and of the Commissioner relating to the practice of pharmacy in New York State.

Plaintiff challenges defendants’ finding of a violation of New York State Education Law Article 137 with respect to two advertisements for discounts at plaintiff’s store, asserting that the advertisements in question are protected commercial speech under the First Amendment.

The case is before the Court on plaintiff’s motion for summary judgment and defendants’ cross-motion for summary judgment and motions to dismiss the action for lack of proper venue under 28 U.S.C. § 1391 or, in the alternative, for change of venue under 28 U.S.C. § 1404(a).

Factual Background

The facts are not in dispute. In 1976 and 1977, plaintiff conducted two advertising campaigns to help it compete more effectively with other retail drugstores in the Buffalo area. In the first campaign, plaintiff posted signs in its store and distributed circulars which stated “Senior Citizens Prescription Plan, 10% extra savings on all prescriptions for anyone over 60” without indicating on either the signs or the handout the normal prices from which the discount would be taken. In the second, plaintiff published newspaper advertisements with a coupon stating: “$1.00 off with this coupon on any one prescription that is not currently being filled at CVS.”

As to both campaigns, plaintiff states, and defendants do not deny, that information as to normal prices could have been obtained by a telephone call to the store; that plaintiff prominently posted, pursuant to New York Education Law § 6826, prices of the 150 most widely prescribed drugs in the pharmacy at its store, and informed customers on the posted sign that the price for any other prescription could be obtained on request; and that it would not have been practical to print the normal prices for the thousands of different prescription drugs sold by plaintiff in a newspaper advertisement or on a handout or sign.

Plaintiff’s store was inspected by the state on December 3, 1976 and December 29, 1977. On the first occasion, the inspector found that window signs in the pharmacy advertising the 10% senior citizens’ discount and a newspaper advertisement containing the “$1.00 off for new prescriptions” coupon were in violation of the state pharmacy regulations quoted below. On the second occasion, the inspector found that application forms for the 10% senior citizens’ discount in the pharmacy were a violation of the regulations. Plaintiff subsequently received notice that a committee of the New York State Board of Pharmacy would conduct a hearing on February 13, 1979 to determine whether violations had in fact occurred. The hearing was held as scheduled, and the Board of Pharmacy decided that the advertising in question did violate rules for pharmacies ’ promulgated by the Board of Regents under Section 6506(9) of the New York Education Law, which provide, in relevant part:

“§ 29.1 General provisions for all professions.
(a) Unprofessional conduct shall be the conduct prohibited by this section. The provisions of these rules applicable to a particular profession may define additional acts or omissions as unprofessional conduct and may establish exceptions to these general prohibitions.
(b) Unprofessional conduct in the practice of any profession licensed or certified pursuant to title 8 of the Education Law shall include:
* * * * * *
(12) advertising or soliciting for patronage that is not in the public interest; (i) Advertising or soliciting not in the public interest shall include but not be limited to advertising that:
(a) is false, fraudulent, deceptive, misleading, sensational or flamboyant;
* * * * * *
(e) offers gratuitous services or discounts in connection with professional services; but this clause shall not be construed to relate to the negotiation *376 of fees between professionals and patients or clients, or to prohibit the rendering of professional services for which no fee is charged;
* * * * * *
(g) states or includes prices for professional services, except as provided for in clause (b) of subparagraph (ii) of this paragraph;
(ii) the following shall be deemed appropriate means of informing the public of the availability of professional services:
(a) informational advertising not contrary to the foregoing prohibitions; and
(b) the advertising in a newspaper, periodical or professional directory or on radio or television of fixed prices, or a stated range of prices, for specified routine professional services, provided that if there is an additional charge for related services which are an integral part of the overall service being provided by the licensee, the advertisement shall so state, and provided further that the advertisement indicates the period of time for which the advertised prices shall be in effect;”

and that:

“§ 29.7 Special provisions for the profession of pharmacy, (a) Unprofessional conduct in the practice of pharmacy shall include all conduct prohibited by sections 29.1 and 29.2 of this Part except as provided in this section, and shall also include the following:
(1) advertisements of the prices of prescription drugs which do not comply with the following provisions:
(i) the advertised price shall be in effect for a period of time stated in the advertisement;
(ii)

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Savarese v. City of New York
S.D. New York, 2019
Westchester Advocates for Disabled Adults v. Pataki
931 F. Supp. 993 (E.D. New York, 1996)
St. Regis Mohawk Tribe v. State of NY
774 F. Supp. 185 (S.D. New York, 1991)
Boston Drugs, Inc. v. Perales
747 F. Supp. 873 (E.D. New York, 1990)
People of State of NY v. Trans World Airlines
728 F. Supp. 162 (S.D. New York, 1990)
Canaday v. Koch
598 F. Supp. 1139 (E.D. New York, 1984)
ANDREW H. BY IRENE H. v. Ambach
579 F. Supp. 85 (S.D. New York, 1984)
Michigan State Chamber of Commerce v. Austin
577 F. Supp. 651 (E.D. Michigan, 1983)
Dubrowsky v. Ambach
88 A.D.2d 1004 (Appellate Division of the Supreme Court of New York, 1982)

Cite This Page — Counsel Stack

Bluebook (online)
493 F. Supp. 374, 1980 U.S. Dist. LEXIS 11773, Counsel Stack Legal Research, https://law.counselstack.com/opinion/south-ogden-cvs-store-inc-v-ambach-nysd-1980.