URGENT-Bayer, Farnam reach agreement on flea, tick ads

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)