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Online Pharmacy Company Sued For “Bait And Switch” Scam
10/01/08 - 08:39 AM

Florida Attorney General's Office

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TALLAHASSEE, FL - Attorney General Bill McCollum today announced that his office has sued a Central Florida internet pharmacy company, alleging the company and its owners engaged in a “bait and switch” scheme. Direct Pharmacy, Inc., a Florida corporation located in Seminole County; the company’s president, Steven McMurtrey; and his wife Rachael McMurtrey, who acted as Direct Pharmacy’s secretary and treasurer, are named in the lawsuit and were served with the complaint earlier this week.

The Attorney General’s Economic Crimes Division filed the lawsuit in late September alleging the McMurtreys and their company engaged in a “bait and switch” scheme, luring consumers into providing their credit card information by advertising prescription diet pills for significantly reduced prices. The company, which conducted business as an on-line pharmacy called www.directdietpills.com, would then purportedly bill consumers for the prescription diet pills but would send herbal supplements instead of the purchased pills.

The lawsuit further alleges that Direct Pharmacy failed to clearly and conspicuously inform consumers that the consumers’ own physicians had to submit prescriptions to the company within three days of their orders, and if the physicians did not do so, the company would send the consumers non-refundable substitute herbal supplements.

Investigators believe that during the four years the McMurtreys operated Direct Pharmacy, Inc. and www.directdietpills.com, approximately 40 consumers a day placed orders averaging $100 per order. The Attorney General’s office reviewed nearly 200 complaints against the company.

Civil penalties against the corporation and the McMurtreys could include an injunction prohibiting them from engaging in this conduct, a requirement that they make restitution to consumers, a $10,000 civil fine for each violation and payment of attorneys’ fees and costs.