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FTC Orders Novartis to Run Ads Retracting Claims About Doan’s

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<i> From Bloomberg News</i>

Novartis, the world’s second-largest drug maker, was ordered by the Federal Trade Commission on Thursday to run advertisements correcting earlier statements that touted its Doan’s back-pain relievers as superior to other medicines.

The ruling marks only the second time in 25 years the FTC has ordered corrective advertising in a contested case. The agency said the step was necessary to restore an even playing field in the multibillion-dollar consumer market for over-the-counter pain relievers.

The FTC said Novartis must spend $8 million on ads that include the words, “Although Doan’s is an effective pain reliever, there is no evidence that Doan’s is more effective than other pain relievers for back pain.”

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The firm must make similar disclosures on its packaging for a year.

“Requiring the dissemination of a truthful message to counteract beliefs created or reinforced by [Novartis’] deceptive message is an appropriate method of . . . denying [the company] the ability to continue to profit from its deception,” Commissioner Sheila Anthony wrote.

Novartis could appeal the order in federal court. “We are seriously considering this option,” said Kate King, a spokeswoman for the company’s Novartis Consumer Health unit, based in Summit, N.J.

The FTC took on a drug that has been marketed for more than 90 years as a backache product. From 1987 to 1996, Novartis’ corporate predecessor, Ciba-Geigy Corp., said Doan’s was better for back pain than competing products.

The disputed ads, which took the form of TV and radio ads and newspaper inserts, cost Ciba-Geigy more than $65 million.

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