NEW YORK, June 17 |
Fri Jun 17, 2011 11:09am EDT

NEW YORK, June 17 (Reuters) – Bayer AG (BAYGn.DE) on Friday
said Farnam Cos Inc had agreed to discontinue claims that its
Bio Spot flea and tick control products are as effective as or
superior to those of other animal-health companies.

Bayer had challenged the accuracy of Farnam print and
online advertisements for its products, including one that Bio
Spot is “the best flea and tick control available.”

Bayer had argued in a challenge before the National
Advertising Division of the Council of Better Business Bureaus
that Farnam’s advertising claims were false and
unsubstantiated. Farnam, in turn, filed a lawsuit in the U.S.
District Court in Arizona, seeking a declaration that its
advertising was not false, Bayer said.

Bayer said a settlement had been reached, which ends its
Better Business Bureaus challenge and the federal lawsuit.

As part of the settlement, Bayer said Farnam would
discontinue all the advertising claims challenged by Bayer, and
refrain from similar claims in the future.
(Reporting by Ransdell Pierson; Editing by Lisa Von Ahn)