Walgreens to pay $6 million to settle FTC complaint
Deerfield, Ill. The Federal Trade Commission said Tuesday that Walgreens will pay $6 million to settle allegations it deceptively marketed a line of its store-brand diet supplements, saying they could prevent colds, fight germs and boost the immune system.
At issue was Walgreen’s marketing of Wal-Born supplements, the chain’s version of Airborne products. The FTC resolved similar investigations into Airborne and chains CVS Caremark and Rite Aid in 2009.
The proposed settlement, which awaits court approval, includes a $1.2 million payment to Walgreen customers as part of a separate lawsuit. The $4.8 million balance will go to the FTC.
Walgreen will be barred under the settlement from saying Wal-Born products prevent or treat cold or flu symptoms or protect against cold or flu viruses, unless scientific evidence supports the claims.
The FTC said it plans to file the proposed settlement in the U.S. District Court for the Northern District of Illinois.
In its settlement, CVS Caremark agreed to refund almost $2.8 million to shoppers who bought its AirShield supplements. Rite Aid refunded $500,000 to consumers who bought Germ Defense tablets, which are made by the same manufacturer, Improvita Health Products, as AirShield and Wal-Born.
The FTC also sued Improvita, and the company’s two principal officers, Thomas Klamet and Daniel Kohler, agreed in January to pay $565,000 to settle the FTC’s inquiry and stop misleading marketing of the products.
Target selects DemandTec for assortment optimization
SAN MATEO, Calif. Target has selected DemandTec’s nextGEN Assortment Optimization software service to further tailor and localize its assortments, DemandTec reported.
The Assortment Optimization software enables retailers to optimize assortments across multiple categories, taking into account shopper insights and preferences.
“Like pricing in recent years, assortment planning has permanently changed. Rank reports and basic analytics simply don’t provide major retailers with the right insights they need to optimize and localize assortments for different store clusters, store layouts, and customer segments,” said Dan Fishback, president and CEO of DemandTec. “Target selecting DemandTec’s Assortment Optimization is a testament to this change and we are honored to further expand our strategic relationship with such an innovative industry leader.”
Capturing the Twi-hards
Target is looking to take a bite out of the “Twilight” competition, by offering its selection of exclusive merchandise and promoting all things “New Moon” on its Web site.
The retailer, like Walmart, is offering its own “exclusive” DVD version of The Twilight Saga: New Moon along with clothing, toys and other items related to the popular film.
Target stopped at going the length Walmart has to garner Twilight fans. Walmart is featuring limited-time “Twilight Saga Shops” in its stores that, in addition to including the DVD and themed merchandise, showcases food and other items to complete a movie viewing experience.