Comcom warns PGNZ
February 13, 2014
The New Zealand Commerce
Commission sent letters of
warning to the Pharmacy Guild
of New Zealand (PGNZ), as well
as all District Health Boards
(DHBs) and pharmacies about a
“no discounting” clause in the
Community Pharmacy Services
Agreement (CPSA).
PGNZ was warned for its role
in advocating the inclusion of the
clauses, which the Commission
believed had the effect of
prohibiting pharmacies from
waiving, or discounting, the $5 copayment
for dispensing prescription
items, and were likely to have
breached the Commerce Act.
The DHBs had since removed the
clauses from the agreements at
the start of last year, Commission
chairman Dr Mark Berry said.
“Once the no discounting clause
was removed, two pharmacies ...
advertised discounting again and
noticed an increase in the number
of prescriptions being dispensed.”
Berry said pharmacies and
other health providers needed
to remember that they were in
competition with each other,
despite the “collegial nature” of
the professions and professional
associations, such as the Guild,
were subject to the Act and needed
to give attention to complying with
the competition laws.
The PGNZ said it had acted in
good faith during CPSA discussions,
and the DHBs took responsibility
to ensure the CPSA complied with
the law.
The Guild supported the DHBs
decisions not to enforce the
breaching clauses, and would
continue to be mindful of the
prohibitions in the Act against anticompetitive
agreements.
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