No more loyalty rewards for drugs

Court of Appeal rules College can ban ‘inducements’

Alberta pharmacies are no longer permitted to offer Air Miles or other loyalty rewards to patients obtaining prescription drugs, following a ruling Friday from the Alberta Court of Appeal.

The Alberta College of Pharmacists has the authority over its profession to impose a ban on “inducements” — a move the college introduced in 2014 but had been legally stymied from implementing, the appeal court said.

“It’s an important decision,” college registrar Greg Eberhart said Friday. “This focuses on how pharmacists, pharmacy technicians and owners of pharmacies conduct themselves.”

The appeal court’s decision overturned a 2016 ruling from Court of Queen’s Bench Justice Vital Ouellette, who determined the ban was outside the college’s mandate since it amounted to interference in the way private businesses choose to operate and compete with each other.

However, the appeal court found Ouellette erred in a number of respects, including applying the wrong legal standard to evaluate the policy.

“In our view, it was an overreach to have construed the policy as being ultra vires (beyond the legal authority) of the college,” the judges said in their written decision. “We hold that the policy is reasonable.”

As a result of the successful appeal, the controversial prohibition takes effect immediately. That means pharmacists and pharmacy technicians are now prevented from offering any incentives — including cash, rewards, coupons, loyalty points and prizes — for prescriptions or professional services.

This focuses on how pharmacists, pharmacy technicians and owners of pharmacies conduct themselves.

Eberhart said the college is reaching out to its members to ensure they are compliant with the rules.

“We’ll move into a monitoring mode and if we are notified that someone is continuing to provide inducements, we will certainly address that,” he said.

The Sobeys grocery chain, which offers Air Miles, filed the legal challenge against the college, but the policy has also drawn opposition from corporations, consumer groups and patient advocates.

“Obviously, we’re disappointed with the decision,” Sobeys West spokeswoman Keri Scobie said Friday. “From our perspective, we do believe there is some value from the incentives that can be provided.”

Scobie said the company’s legal team has yet to determine whether an appeal to the Supreme of Court of Canada will be attempted.

Such a move seems dubious, considering the Supreme Court has already declined to hear an appeal of a similar decision from the B.C. Court of Appeal.

Sobeys and other opponents have argued loyalty programs help patients stay on their medications — an assertion that was somewhat backed up by a University of Alberta study earlier this year.

However, Eberhart said the study had limited value since it focused on only one or two drugs and was based on questionable assumptions.

The college has argued incentive programs aren’t appropriate for health professionals, who should focus on patient care rather than retail sales.