Pharmacy Daily | Class action threat no distraction: API

THREATS of an "imminent class action" by a former Priceline Pharmacy franchisee are not distracting the API-owned banner from supporting its members, the company says.

Priceline Pharmacy General Manager, Andrew Vidler, told Pharmacy Daily that "as of today there is still no class action", despite Sydney-based law firm, Levitt Robinson, advertising that a case was "imminent" since May last year (PD 06 May 2020).

"Apparently, it can only proceed if enough franchisees agree to a funding agreement.

"We understand the lead applicant in the proposed action is a former Priceline franchisee who is no longer with the brand.

"Priceline remains focused on supporting our franchisees through these difficult times and doing our utmost to help ensure that they can fully play their role in the distribution of COVID-19 vaccinations.

"We will protect the brand and business we have built together.

"We have no further comment to make on this matter."

In its initial notice to Priceline Pharmacy franchisees, Levitt Robinson said the proposed oaction was to "obtain a fairer franchise agreement", add value to the investment made by existing franchisees and secure compensation "for any proven infringing conduct, including loss of profits".

The firm alleges that many franchise agreements between Priceline Pharmacy and pharmacy owners "may breach the current legislative framcework which governs pharmacies in NSW, Queensland and Victoria".

However, a spokesperson for the Pharmacy Council of NSW, which regulates pharmacy ownership, told Pharmacy Daily (PD 07 May 2020)it reviews franchise agreements for compliance with schedule 5F of the Health Practitioner Regulation National Law (NSW) and in particular the provisions related to financial interests, in relation to stores in the state.

"The Council will not approve an application supported by a franchise agreement which contravenes schedule 5F of the Law," the spokesperson said.