Pharmacy Daily | Lawyers plot Priceline class action

SYDNEY-BASED law firm, Levitt Robinson, is calling on current and former Priceline Pharmacy franchisees, with stores based in NSW, Queensland or Victoria, to join a class action suit against the banner group.

In a notice to franchisees the firm said the objective of the action 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 franchise agreements between pharmacy owners and the Priceline banner, owned by Australian Pharmaceutical Industries (API), signed at any time from 18 Nov 2010 onwards, may contain provisions "that may breach the current legislative frame work which governs pharmacies in NSW, Queensland and Victoria".

"Examples of the features in the franchise agreements by which Priceline is able to exert control over your pharmacy, involve Priceline pharmacists being required to:

1. Stock the Merchandise Range, which is determined by Priceline;

2. Place orders through the Auto-Replenishment system;

3. Only order through API;

4. Comply with Priceline's Visual Merchandising systems to ensure compliance with the Brand Alignment Reward Scheme; and

5. Price items as determined by Priceline," the firm said.

Participants seeking to join the action will be required to opt-in for the litigation-funded suit by registering with Levitt Robinson.

In its prospectus for the case the firm said the action was not designed to devalue or damage the Priceline brand.

A spokesperson for the Pharmacy Council of NSW, which approves store premises and registers financial interest holders in pharmacy businesses, told Pharmacy Daily, it was unable to comment on commercial in confidence matters related to ownership.

However, it noted that, "franchise agreements are examined for compliance with schedule 5F of the Health Practitioner Regulation National Law (NSW) and in particular the provisions related to financial interests".