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WOONSOCKET, R.I. — The Federal Trade Commission has ended a two-year investigation of CVS Caremark Corp. with no allegations of antitrust violations or anticompetitive behavior.
The investigation did result in the company agreeing to pay $5 million related to the business practices of a Longs Drug Stores subsidiary prior to the acquisition of Longs by CVS Caremark in October 2008.
Pursuant to a consent order, CVS Caremark will deposit the money into a fund that will be used to compensate consumers who purchased coverage for the 2008 plan year from a Medicare Part D prescription drug plan sponsored by Rx America, the Longs subsidiary.
The fund is being established as a result of Rx America inadvertently posting inaccurate pricing information for certain generic drugs on a website maintained by the Centers for Medicare and Medicaid Services.
CVS Caremark also agreed to refrain from making any misrepresentations regarding drug pricing information relating to affiliate-sponsored Medicare Part D plans.
The consent order will be published in the Federal Register and is subject to comment through mid-February.
“CVS Caremark is pleased to have reached an agreement with the FTC that ends the investigation and enables us to continue our focus on offering unique, innovative products and services,” said president and chief executive Larry Merlo.
