Navigating Civil Investigative Demands from the FTC – Protecting Independent Pharmacies from Unfair Burdens

In recent months, the Federal Trade Commission (FTC) has significantly increased its scrutiny of Pharmacy Benefit Managers (PBMs), seeking to uncover potential anti-competitive practices within the pharmacy sector.  As part of the recent efforts, FTC has been issuing Civil Investigative Demands (CIDs) to independent pharmacies, but the CIDs are onerous, and the pharmacies are often overwhelmed by the complexity, scope, and cost of these demands. It’s crucial for independent pharmacies to understand their rights and navigate these demands with legal guidance.

Understanding Civil Investigative Demands:

A CID is essentially a subpoena that allows the FTC to request documents or oral testimony to assist in their investigation. These demands are designed to be comprehensive and have strict deadlines, meaning independent pharmacies may quickly find themselves buried under tight timelines and procedural complexity. The demands may include requests for the production of pricing information, contracts, business practices, financial records, and communications. Compliance becomes a challenging task that requires significant resources, not to mention the risk of inadvertent errors leading to penalties.

Challenges Faced by Independent Pharmacies:

  1. Scope and Complexity: The CIDs often demand comprehensive data that can include historical information, patient records, financial information, and even proprietary business practices. Gathering, organizing, and delivering this information accurately requires substantial effort, knowledge, and time.
  2. Cost of Compliance: Meeting the demands often necessitates diverting resources from daily operations, resulting in financial strain and disruption to customer service.
  3. Legal Ambiguity: Misinterpreting the scope of a CID or providing incomplete responses can result in legal ramifications. The unclear wording can lead to unintentional errors that jeopardize the pharmacy’s standing with other parties or stakeholders.

Why Legal Expertise Matters:

Dealing with CIDs requires an understanding of the law and the PBM-pharmacy relationship. The perceived authority of the FTC often pressures pharmacies into hurried compliance, fearing punitive measures for delays or errors.

Attorneys who specialize in representing independent pharmacies can provide strategic guidance to:

  • Limit the Scope and Burden of the Demands: Advocate for narrowing the scope of the CID to ensure only necessary information is provided.
  • Prepare Responses: Assist in crafting accurate and strategic responses that fulfill the FTC’s requirements without exposing the pharmacy to undue risks.
  • Ensure Compliance: Provide oversight throughout the process to avoid pitfalls that could result in penalties or further investigations.
  • Defend Proprietary Interests: Protect sensitive business information and ensure that only non-confidential data is shared.


As the FTC intensifies its investigation into PBMs, independent pharmacies may expect to receive CIDs that require swift and accurate responses. The cost and complexity of compliance can be detrimental to these small businesses. Therefore, seeking specialized legal assistance is critical to safeguarding their interests while meeting the FTC’s demands efficiently and strategically.

At Frier Levitt, our team is dedicated to representing independent pharmacies and understands the unique challenges faced when responding to CIDs. Our goal is to ensure that pharmacies are not unfairly burdened while advocating for fairness and transparency in the investigation process. If your pharmacy is facing a CID, reach out to us for a consultation.