Florida Attorney General Charlie Crist said his office has reached a settlement with a company that enticed citizens to pay almost $200 for help in obtaining free medicines, but then often failed to deliver.
Under the agreement, the company will have to provide full refunds to consumers who paid fees but did not receive the requested medicines, and will also have to change its business practices to further protect consumers.
The settlement resolves the Attorney General's case against Consumer Savings Direct, a Naples-based company that does business nationally as Free Medicine Direct.
The company advertises through direct mailings, newspapers and broadcast commercials, promising to help consumers obtain free medications from pharmaceutical companies. The ads do not make clear that the service is not "free" but instead costs $199.
Consumers do not actually need such intermediaries to apply for pharmaceutical manufacturers' programs that provide free medications to eligible patients.
The Attorney General's Office received about 200 consumer complaints regarding Free Medicine Direct, mostly from consumers who did not get medicines even though they had paid the company's fee.
Some consumers were informed that they were not eligible for the manufacturers' programs, but most of the unhappy consumers were unable to obtain any explanation at all. Some reported unauthorized deductions from their bank accounts to pay for Free Medicine Direct's services.
"It's bad enough to charge unsuspecting consumers a large fee to obtain what should be free in the first place," said Crist. "To then fail to provide the requested service makes a bad situation even worse. I am pleased that through this settlement, affected consumers will be able to get their money back."
Cheryl Hanson of Jacksonville is typical of those victimized by Free Medicine Direct. She was attracted by the company's offer of a service in which people with low incomes could pay $200 for processing fees and would then receive free medicine.
In complaining to the Attorney General's Office, Ms. Hanson said her bank account was debited twice for the $200 free, but she never received any medicine through the company.
Under the Assurance of Voluntary Compliance outlining the settlement, Free Medicine Direct will be required to reimburse consumers who paid fees but did not receive the requested medications. Affected consumers who have not yet requested a refund may submit such a request to the Attorney General's Office within the next year. If it is determined that the consumer is eligible, the company will then provide a refund.
Florida Consumers who wish to file requests for reimbursement should either call Attorney General Crist's toll-free Fraud Hotline at 1-866-9-NO-SCAM (1-866-966-7226) or fill out a complaint form via the Internet on Attorney General Crist's website myfloridalegal.com.
