FTC settles claim with Rx monopolist CVS Caremark

Last week, the Federal Trade Commission announced (news release) that CVS Caremark Corporation (pdf of the complaint) will "pay $5 million to settle Federal Trade Commission charges that it misrepresented the prices of certain Medicare Part D prescription drugs – including drugs used to treat breast cancer symptoms and epilepsy – at CVS and Walgreens pharmacies."

Last week, the Federal Trade Commission announced (news release) that CVS Caremark Corporation (pdf of the complaint) will “pay $5 million to settle Federal Trade Commission charges that it misrepresented the prices of certain Medicare Part D prescription drugs – including drugs used to treat breast cancer symptoms and epilepsy – at CVS and Walgreens pharmacies.”

CVS Caremark is a powerful intermediary in the Rx business representing the 4-year old merger of the powerful drug store chain CVS and the large Pharmacy Benefits Manager (PBM) Caremark. Last April, U.S. PIRG and other leading groups including Consumer Reports/Consumers Union, National Legislative Association on Prescription Drug Prices (NLARx), Community Catalyst and the Consumer Federation of America  (letter) urged the Federal Trade Commission to break up the merger  because it reduced choice, raised prices and violated patient privacy (more from New York Times).

Along with CFA and NLARx, we have also urged the U.S. courts (amicus  brief) not to remove litigation against CVS Caremark into the private, secret arbitration process.

Topics
Authors

Ed Mierzwinski

Senior Director, Federal Consumer Program, PIRG

Ed oversees U.S. PIRG’s federal consumer program, helping to lead national efforts to improve consumer credit reporting laws, identity theft protections, product safety regulations and more. Ed is co-founder and continuing leader of the coalition, Americans For Financial Reform, which fought for the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, including as its centerpiece the Consumer Financial Protection Bureau. He was awarded the Consumer Federation of America's Esther Peterson Consumer Service Award in 2006, Privacy International's Brandeis Award in 2003, and numerous annual "Top Lobbyist" awards from The Hill and other outlets. Ed lives in Virginia, and on weekends he enjoys biking with friends on the many local bicycle trails.

Find Out More