Attorney General's News Release

July 5, 2006

Missourians misled by claims of “free” prescription drugs will receive restitution from Florida company

Jefferson City, Mo. — Missourians who paid at least $195 apiece to a Florida business thinking they would receive help in getting free prescription drugs from pharmaceutical companies will get their money back under a settlement obtained by Attorney General Jay Nixon. Nixon said Consumer Savings Direct did little for consumers in exchange for the fee and that consumers could have obtained most of the information about drug programs for income-eligible consumers at no charge.

Henry County Circuit Judge William Roberts has approved a consent judgment requiring Consumer Savings Direct, which did business under the name Free Medicine Direct, to pay a total of $4,092 in restitution to 20 consumers statewide and $1,000 to the state of Missouri for the costs of the lawsuit. The order also prohibits the company from engaging in any deceptive sales practices.

“It's ironic that this company goes by the name Free Medicine Direct, because the scheme they peddled to Missouri consumers was anything but free,” Nixon said. “The consumers who are most likely to fall prey to such unfair and deceptive practices are generally those who can least afford to lose money. This company must now stop these deceptions and pay back money to the consumers who were victims.”

Free Medicine Direct began advertising in newspapers, on television commercials and on the Internet in December 2004. Last August, Nixon sued the Naples-based company, alleging that it:

• Failed to disclose in its advertisements that consumers could apply for the prescription drug programs on their own at no cost;
• Failed to disclose that consumers would be charged an annual fee of $199.95 if they signed up for Free Medicine Direct's services;
• Required consumers to provide their Social Security numbers, bank account and credit card numbers and began debiting accounts before consumers were deemed eligible to participate in the program; and
• Failed to provide refunds to consumers, even those who had been ruled ineligible for the program or had not received free prescription drugs.

In April, Nixon reached a settlement with a California-based company he sued over a similar scheme. MyFreeMedicine.com was required to pay $1,233 in restitution and $1,995 to the state and change many of its business practices, including providing clear disclosures and prompt refunds to consumers.

Inquiries from consumers should be directed to consumer@ago.mo.gov or 1-800-392-8222 (from within Missouri) or 573-751-3321 (outside Missouri).

All media inquiries should be directed to Press Secretary John Fougere.

E-mail      Phone: 573-751-8844         Fax: 573-751-5818