Violation Tracker Individual Record

CVS Caremark
Current Parent Company: 
CVS Health
January 12, 2012
Offense Group: 
consumer-protection-related offenses
Primary Offense: 
consumer protection violation
Violation Description: 

CVS Caremark Corporation agreed to 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. The allegedly deceptive claims caused many seniors and disabled consumers to pay significantly more for their drugs than they expected and pushed them into the "donut hole," a term referring to the coverage gap where none of their drug costs are reimbursed sooner than they anticipated or planned. The settlement barred deceptive claims related to Medicare Part D drug prices and required CVS Caremark to pay $5 million to reimburse affected Medicare Part D consumers for the price discrepancy.

Level of Government: 
Action Type: 
agency action
Federal Trade Commission
Civil or Criminal Case: 
HQ Country of Parent: 
HQ State of Parent: 
Rhode Island
Ownership Structure of Parent: 
publicly traded
Major Industry of Parent: 
Specific Industry of Parent: 
Source Notes: 
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Parent company note: 
Parent-subsidiary relationship is current as of the most recent revision listed in the Update Log.