UPDATE 2-CVS to pay $2.8 mln refunds for immune-support ads

* CVS refunds involve AirShield (ADDS comment from CVS)

WASHINGTON, Sept 8 (Reuters) - CVS Caremark Corp (CVS.N) will pay nearly $2.8 million in refunds to customers who bought its AirShield supplements to prevent illness, the Federal Trade Commission said on Tuesday.

The FTC had accused CVS of making unsubstantiated claims that AirShield could prevent colds and fight germs.

The FTC had previously reached a similar settlement with Rite Aid Corp (RAD.N), which said in July that it would pay $500,000 to settle charges of deceptive advertising involving its Germ Defense medicines.

In August 2008, Airborne Inc agreed to pull misleading ads as part of an FTC probe.

As part of that settlement, Airborne agreed to add up to $6.5 million to a $23.5 million fund created by a separate class action lawsuit filed against Airborne in California.

The packaging for CVS's Airshield, the store brand equivalent to Airborne, was changed in 2008, CVS said in a statement.

"CVS has also agreed to pay $2.78 million to the FTC to cover the costs of a refund program for customers who purchased CVS Airshield from July 2005 through November 2008," the chain said.

FTC will administer the refund program based on purchase information provided by CVS, said FTC spokeswoman Betsy Lordan.

The commission warned consumers to be aware of claims made about dietary supplements.

"With orders against Airborne, Rite Aid, and now CVS, manufacturers and retailers are on notice that they have to tell the truth about what dietary supplements can and cannot do," added David Vladeck, director of the FTC's Bureau of Consumer Protection. (Reporting by Diane Bartz; Editing by Richard Chang and Carol Bishopric)