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ARTICLE · 25 JANUARY 2012

CVS To Pay FTC $5 Million To Settle Deceptive Pricing Charges

Frankfurt Kurnit Klein & Selz PC
Frankfurt Kurnit Klein & Selz PC
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Frankfurt Kurnit Klein & Selz PC

Frankfurt Kurnit Klein & Selz PC

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Michael Schiffer is counsel to the Advertising, Marketing, and Public Relations Group, focusing on intellectual property and advertising matters.

United StatesMedia, Telecoms, IT, Entertainment
Frankfurt Kurnit Klein & Selz, PC
Frankfurt Kurnit Klein & Selz, PC
Jeffrey Greenbaum
Jeffrey Greenbaum
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Last week, the Federal Trade Commission ("FTC") announced that CVS Caremark Corporation ("CVS") will pay $5 million to settle claims that it misrepresented the actual prices of certain Medicare drugs.

The FTC alleged that CVS advertised prescription drug prices on its own websites and other Medicare- and Medicaid-sanctioned websites that were as much as ten times less than what consumers were actually charged.

The Centers for Medicare & Medicaid Services offers a web tool that calculates an individual's estimated drug costs based on Medicaid-sanctioned prescription drug providers' advertised prices. The FTC alleged that consumers chose to buy from CVS based on the competitive pricing advertised through this web tool, but then were ultimately forced to pay higher prices at the register.

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