Press Release: A.G. Underwood Announces Settlement With Pfizer For Deceptive Advertising in 'Pay No More Than' Drug Copayment...
October 11 2018 - 11:52AM
Dow Jones News
FOR IMMEDIATE RELEASE
October 11, 2018
Attorney General's Office Press Office / 212-416-8060
nyag.pressoffice@ag.ny.gov
A.G. Underwood Announces Settlement with Pfizer for Deceptive
Advertising in "Pay No More Than" Drug Copayment Card Program
One Consumer Was Promised She'd "Pay No More Than" $15 for the
Prescription - and Had to Shell Out $144.62 at the Register
Pfizer Will Pay Over $200,000 in Restitution for NY Consumers,
Plus $500,000 in Penalties, Fees, and Costs
NEW YORK - Attorney General Barbara D. Underwood today announced
a settlement with major biopharmaceutical company, Pfizer Inc.
("Pfizer"), following an investigation into the company's business
and advertising practices for its copayment coupon program. As part
of the program, consumers were told that they would "pay no more
than" $15 or $20, for example, for certain drugs - but ended up
spending far more at the pharmacy cash register.
The settlement resolves allegations that Pfizer deceptively
marketed its copayment coupon program for its Estring, Quillivant
XR and Quillichew ER ("Quillivant"), and Flector Patch products
when it distributed these copayment coupons to consumers throughout
the state without clearly and conspicuously disclosing the material
terms and conditions.
Pfizer's copayment coupons stated in large, clear text that
eligible consumers would "PAY NO MORE THAN" certain amounts
out-of-pocket. For example, large, bold print on the Estring
copayment coupon said that a consumer using the copayment coupon
would "PAY NO MORE THAN $15" for a prescription. In fact, consumers
frequently paid significantly more than the "PAY NO MORE THAN"
amount that appeared on the relevant Pfizer copayment coupons
because of limits on total savings that were not prominently
disclosed.
"Pfizer misled customers by promising a low copay for
prescription drugs - only to leave them with major bills at the
cash register. Now, they must take responsibility and provide
restitution to the New Yorkers they deceived," said Attorney
General Underwood. "My office will continue to investigate
companies that mislead and deceive New Yorkers, including and
especially those seeking medical treatment."
The Attorney General opened an investigation into Pfizer's
marketing of its copayment coupons to New York consumers following
the receipt of a complaint from a consumer who obtained a deceptive
Estring copayment coupon. The coupon included the deceptive
language "PAY NO MORE THAN $15." Like many other unknowing
consumers, when this consumer presented the coupon at the pharmacy
register, she had to pay $144.62 - far more than the promised
$15.
Following the Attorney General's investigation, Pfizer agreed to
change the text of the Estring, Quillivant, and Flector Patch
copayment coupons to explain that patients could "pay as little as"
a listed amount, a process Pfizer completed as of early 2018.
The Attorney General's settlement requires the company to pay
$500,000 in penalties, fees, and costs to the State of New York, as
well as over $200,000 in restitution to consumers. New York
consumers are eligible to receive restitution under the Attorney
General's settlement for the amount of their copayment that
exceeded the "PAY NO MORE THAN" amount listed on the relevant
Estring, Quillivant, or Flector Patch copayment coupon for the
first use of the card. Consumers who want to report a deceptive
advertisement of prescription drugs, including a deceptive
copayment coupon, or who have any other health care related
complaints, can reach the Attorney General's Health Care Bureau
Helpline at 800-428-9071 or file a complaint online.
This case was handled by Assistant Attorneys General Lilia
Toson, Adrienne Lawston, and Dorothea Caldwell-Brown and Deputy
Bureau Chief Susan J. Cameron of the Health Care Bureau, with the
assistance of Health Care Bureau Helpline Advocate John Rice and
OAG Deputy Director of Research and Analytics Megan Thorsfeldt,
under the supervision of Bureau Chief Lisa Landau and Executive
Deputy Attorney General for Social Justice Matthew Colangelo.
###
State of New York Attorney General
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(END) Dow Jones Newswires
October 11, 2018 11:37 ET (15:37 GMT)
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