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SELEA/ORDINE DEI FARMACISTI


PRESS RELEASE



PRESS RELEASE

Investigation of the ban on discounts in pharmacies

On 12 July, the Competition Authority opened an investigation into the National Federation of Pharmacists' Associations, and the Pharmacists' Associations of Avellino, Bergamo, Cremona, Mantua, Padua, Sassari and Turin, and the National Federation of Pharmacy Owners - Federfarma, and the Provincial Associations of Pharmacy Owners of Bergamo, Cremona, Mantua and Turin, to ascertain whether their conduct is hampering competition.
The investigation began as a result of a complaint from the Selea srl company and a report from the Finance & Excise Police regarding the Code of Conduct and the Regulation on advertising pharmacies approved by the National Federation of Pharmacists' Associations in 1996, and more specifically the provisions restricting the independence of the pharmacists. Under these provisions, pharmacists are prohibited from advertising the work of their pharmacy or products which may be lawfully advertised, and from running any promotional schemes "designed to win over customers", which includes offering discounts on products whose price is not regulated.
The investigation will also examine the conduct by Federfarma and some of the Provincial Associations of Pharmacy Owners who have urged their members to adopt coordinated pricing policies in order to combat the sale of pharmaceutical products in retail chain-stores.
Lastly, the investigation will also examine the circular letters sent out by the Associations of Avellino, Bergamo, Cremona, Mantua, Sassari, and Turin and the Pharmacy Owners' Associations of Bergamo, Cremona, Mantua and Turin, prohibiting their membership from offering discounts on pharmaceutical products using, for example, loyalty cards.
Such conduct could restrict competition on the national market considering that the National Federation of Pharmacists' Associations and Federfarma account for all the pharmacy owners nationwide and locally through their local organizations.
The investigation is set for completion by 31 July 2001.

Rome, 21 July 2000.