Basic Search  |  Summaries  |  Advanced Search

Violation Tracker Individual Record

Company: CVS Caremark
Current Parent Company: CVS Health
Penalty: $5,000,000
Year: 2012
Date: 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: federal
Action Type: agency action
Agency: Federal Trade Commission
Civil or Criminal Case: civil
HQ Country of Current Parent: USA
HQ State of Current Parent: Rhode Island
Ownership Structure of Current Parent: publicly traded
Major Industry of Current Parent: retailing
Specific Industry of Current Parent: retail-pharmacies
Source of Data: (click here)
Source Notes: If an online information source is not working, check the Violation Tracker Data Sources page for an updated link.
Current parent company note: Parent-subsidiary relationship is current as of the most recent revision listed in the Update Log.