CVS Caremark settles FTC charges over ad claims

WASHINGTON The Federal Trade Commission announced on Tuesday that CVS Caremark will pay nearly $2.8 million in consumer refunds to settle FTC charges related to ads of its AirShield supplement.

The case is similar to cases that the FTC has announced in the last year against Airborne Health, Improvita Health Products and Rite Aid, which involved dietary supplements that purportedly treat colds and the flu.

In a statement sent to Drug Store News, CVS stated, “CVS/pharmacy has entered into a settlement agreement with the FTC regarding statements made on its store brand product, CVS Airshield, the store brand equivalent of the national brand product, Airborne.  Following the FTC’s settlement with Airborne concerning that product’s advertising, CVS/pharmacy relaunched Airshield in 2008 with new packaging consistent with the terms of this settlement agreement.  CVS has also agreed to pay $2.78 million to the FTC to cover the costs of a refund program for customers who purchased CVS AirShield from July 2005 through November 2008.”

CVS marketed AirShield products by touting the similarity to “Airborne,” which last year settled FTC charges for making the same kind of claims. Like Airborne Health, the FTC charges CVS with making false and deceptive advertising claims that using its product would reduce the risk of colds and protect against catching colds in crowded places, such as schools or airplanes. According to the FTC, CVS had no evidence that the products could boost the immune system or prevent colds.

A settlement with Rite Aid regarding similar claims for its “Germ Defense” products was announced on July 13. A Rite Aid consumer refund program will begin on Oct. 1.

According to the FTC, CVS will provide $2.78 million for refunds to consumers who purchased AirShield products. Purchases will be identified through the CVS ExtraCare card loyalty program and sales on CVS.com.