GoodRx Files Lawsuit Challenging Arkansas Prescription Discount Card Law

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A California drug discount company has filed a federal lawsuit challenging a state statute regulating prescription discount cards and coupons, arguing the law is unconstitutional and could lead to the company providing misleading information to patients.

GoodRx Inc. of Santa Monica, California, filed the lawsuit last week in the U.S. District Court in Little Rock, challenging Arkansas Code §4-106-201, which sets requirements for companies offering health care discount cards. GoodRx argues that portions of the law are unconstitutional, as they violate First Amendment free speech protections and Fourteenth Amendment due process rights.

The code was enacted in 1999 and last amended in 2005. GoodRx was founded in 2011. The law originally was designed to address concerns about prepaid discount cards, with legislators noting that “consumers in the State of Arkansas purchase health-related cash discount cards with the expectation that all health-related cash discount cards will provide significant savings for the cost of health care.”

At the heart of the dispute is a requirement that discount cards must inform consumers they have “the right to cancel registration within thirty days from the card’s effective date.” GoodRx says in the lawsuit that this mandate is problematic because most of its discount offers are free, require no registration and have no effective date.

“Since most GoodRx cards are free, require no registration and have no effective date, the statement purportedly required would be neither relevant nor accurate if applied to those cards,” the lawsuit said. 

The lawsuit also challenges the statute’s enforcement provisions, which allow “any person” to sue for damages even if they haven’t used the discount cards or suffered any injury. GoodRx’s complaint argues this could expose companies to multiple lawsuits for the same alleged violations.

The case was prompted by a state court lawsuit filed in May 2024 by the Bert and Annette Mullens Foundation of Russellville, which GoodRx alleged has never used its services but is seeking damages under the statute. GoodRx also argues the foundation’s lawsuit should be moved to arbitration under the company’s terms of service.

The foundation’s lawsuit alleges it is entitled to “recover statutory damages of $100 per card marketed, promoted, advertised or otherwise distributed in Arkansas or $10,000, whichever is greater.”

GoodRx claims that “the foundation alleges it has never used GoodRx’s coupons or cards,” yet it brought a lawsuit in Arkansas state court seeking to hold GoodRx liable for violations of the state code. The lawsuit also claims that “upon information and belief, the foundation does not engage in any charitable work related to health care.”

Instead, the foundation seems focused on education. Both Bert and Annette Mullens attended Arkansas Tech University in Russellville, and their foundation has made significant donations to the university in the past, including a new scholarship program announced Jan. 25.

Arkansas Attorney General Tim Griffin is also named as a defendant in his official capacity, as the statute allows the attorney general to bring enforcement actions.

GoodRx wants U.S. District Court Judge James M. Moody Jr. to say portions of the law are unconstitutional and to block enforcement of the challenged provisions.

The Arkansas attorney general’s office responded to Arkansas Business’ request for comment Monday, stating the office was reviewing the lawsuit.