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Merck Settles, Agrees To Advertising Restrictions

Ad Age, Wednesday, May 21, 2008 10 AM

As part of the largest settlement ever for a class-action lawsuit against a pharmaceutical company, Merck & Co. agreed yesterday to pay $58 million with 30 state attorneys general for advertising Vioxx before its effects were understood. The company will also now have to submit all its DTC ads to the Food and Drug Administration for approval before airing.

The company's aggressive marketing of the drug "drove hundreds of thousands of consumers to seek prescriptions before Vioxx's risks were fully understood," said Oregon Attorney General Hardy Myers. The settlement concludes a three-year investigation.

Pre-approval of DTC advertising, though urged by some legislators, has been controversial with drug companies and ad associations. Nonetheless, most pharmaceutical companies already submit their ads to the FDA voluntarily.

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