Association flags pharmacies’ practice of offering deep discounts, calls for action

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Flagging the practice of some pharmacies offering deep discounts for medicines, the Tamil Nadu Chemists and Druggists Association (TNCDA) has urged the Chief Minister and health officials to ensure strict enforcement of margins stipulated under the  Drugs (Prices Control) Order (DPCO) and to remove discount boards displayed in pharmacies in the State.

In a letter to the Chief Minister, the association’s president S. A. Ramesh and general secretary K.K. Selvan said that legislations were designed to guarantee both the quality of drugs and their availability to consumers at fair and reasonable prices. However, current market dynamics, specifically the proliferation of deep discount board practices in some pharmacies and unrestricted sale of prescription drugs online, are creating an environment where quality is being compromised in the pursuit of attracting customers.

This concerning trend among some retail community pharmacies threatens to undermine the core objectives of the Drugs Control Act and DPCO.

Elaborating the detrimental impact of deep discounts, the association said the aggressive marketing strategy of extensive discount displays by pharmacies and unauthorised online discounting of medicines are primarily aimed at attracting customers. These deep discounts often erode the already thin margins of retailers, potentially impacting their ability to maintain optimal storage conditions and inventory quality.

The focus on price over quality creates an unsustainable and unhealthy competitive environment for retail community pharmacies. The emphasis shifts from ensuring integrity and efficacy of medications to a race to the bottom in pricing, ultimately jeopardising consumer safety, TNCDA said.

There was an increased risk of spurious drugs, the association noted. The pressure to offer deep discounts can incentivise retailers to procure drugs from questionable sources to maintain competitiveness, creating an environment where counterfeit or substandard products can enter the supply chain, posing a risk to public health.

TNCDA also expressed concern on the increasing prevalence of online pharmacies that operate without proper oversight and often offer substantial discounts. The lack of regulation could result in sale of spurious drugs as well as dispensing of prescription drugs without valid prescriptions and pharmacist supervision.

TNCDA, with 40,000 members across the State, urged the CM to intervene and address the critical issues.

They urged the government to ensure strict enforcement of margins stipulated under DPCO to ensure that retailers are able to maintain quality standards without being forced to compromise due to pricing pressures and removal of discount boards displayed in premises.

Public awareness campaigns can be launched to educate consumers about the risks associated with purchasing drugs from unauthorised sources or those offering unreasonably deep discounts.

It also called for enhanced collaboration between regulatory bodies, pharmacy associations and law enforcement agencies to monitor and prevent the sale of spurious drugs.

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The Hindu