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From the Boston Globe Business Team

Prescription discounter settles with attorney general

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October 25, 2006 04:28 PM

Attorney General Thomas F. Reilly said today that his office had reached a settlement with Peoples Benefit Services Inc., which has agreed to pay $180,000 to settle claims that it deceptively marketed prescription drug discount cards.

Under the agreement, Peoples Benefit Services has not admitted liability.

Last year, Reilly sued the Pennsylvania company, claiming it used such deceptive practices as using government-like logos and terms in television ads and in mailings to market its prescription discount card.

Reilly said in a statement, "Today's settlement sends a strong message to companies offering prescription discount programs to seniors -- you must be honest and accurate in your advertising or pay the consequences."

"Peoples Benefit Services is satisfied that the matter is now resolved," a company spokeswoman said.
(By Chris Reidy, Globe staff)

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