Kansas and 30 other states share over $58 million in a record breaking settlement
May 20, 2008 -- Attorney General Steve Six today filed a stipulated judgment with Merck and Company, Inc. resolving a three-year investigation by 31 states concerning the company's deceptive promotion of the drug Vioxx. In addition to a $58 million payment to the participating states, the judgment filed in the Shawnee County District Court will largely restrict Merck's ability to deceptively promote any Merck product.
"While this money will help increase consumer education and enforcement of our Consumer Protection Act, I'm particularly pleased with the additional protections that will restrict Merck's ability to use deceptive advertising and promotions," Six said.
Today's judgment requires Merck to submit all "direct to consumer" (DTC) television drug advertisements to the Food and Drug Administration (FDA), wait for approval and comply with FDA comments before running the advertisement. Merck must also comply with any recommendation by FDA to delay DTC advertising for new Merck pain relieving drugs. The states' Attorneys General expressed concerns regarding the negative effects of DTC advertising immediately following the release of a new drug. It is suggested that advertising could be delayed while doctors have a chance to gain experience with the drug and understand its potential side effects.
"Merck's aggressive early promotion of Vioxx drove hundreds of thousands of consumers to seek prescriptions before Vioxx's risks were fully understood," Six said. "This agreement gives the FDA clear discretion and authority to oversee Merck's advertising practices in order to protect consumers across the country."
Other concerns of the states are either prohibited or curtailed in the judgment including:
- deceptive use of scientific data when marketing to doctors,
- "ghost writing" of articles and studies,
- failing to adequately disclose the conflict of interest of Merck promotional speakers when these speakers present in supposedly "independent" Continuing Medical Education,
- Conflicts of interest in Merck sponsored Data Safety Monitoring Boards
Kansas will receive $1.2 million which will be used to enhance the consumer protection enforcement fund and consumer education throughout the state. Consumers wanting more information about this settlement and Kansas consumer protection in general may call (800) 432-2310 or visit www.ksag.org.