Pharmacist sues Shoppers for ‘unethical’ practices
Owner Loblaw rejects claims by ex-franchisee
A former Shoppers Drug Mart franchisee has sued the company and its corporate parent, Loblaw, saying pharmacists have been forced into “unsafe and unethical” practices to boost company profits.
The proposed class-action lawsuit was filed in Ontario Superior Court last week by Toronto-based law firm Ricketts Harris on behalf of Sivajanan Sivapalan, whose franchise agreement to run a Shoppers in Beamsville, Ont., was terminated by the chain in January 2023.
A spokesperson for Loblaw said the company intends to fight the lawsuit.
“This case has no merit whatsoever, and we intend to vigorously defend it,” said spokesperson Catherine Thomas.
Among the allegations in the lawsuit — which haven’t been tested in court — are that since Loblaw acquired Shoppers in 2014, pharmacy franchise owners have come under increasing pressure to meet quotas for medication reviews, vaccinations and diagnosing minor ailments.
The lawsuit also alleges that company policies put pharmacists in jeopardy of breaching their professional obligations with the Ontario College of Pharmacists.
The company has 20 days from the initial claim to either file a statement of defence or give notice that it intends to file a defence. Legal industry insiders say the suit could take a while — potentially years — to work its way through the court system, even if a judge “certifies” the class, which gives claimants the
The suit alleges pharmacists have been pressured to meet new quotas for vaccinations and medication reviews
judicial green light to proceed with a class action.
The suit also alleges that the company “minimized” support staff hours, and forced franchisees to use a computer system that allegedly created “a high risk” of medication dispensing errors.
“The corporate practices interfere with associates-owners’ ability to use their professional judgment as pharmacists, place associate-owners in an irredeemable conflict of interest, and interfere with pharmacists’ ability to care for patients safely and effectively,” the lawsuit alleges.
The company practices are often imposed “with little to no prior consultation or input,” according to the lawsuit. “When SDM seeks input or consent on corporate practices from franchisees, the means it employs are often coercive or illusory.”
The suit is filed on behalf of pharmacists whose Shoppers franchises have been revoked by the company since 2014, as well as current franchise owners. The suit seeks unspecified damages for breach of contract, breach of dealing in good faith, and also seeks punitive damages.
According to the lawsuit, franchise agreements are typically signed for a three-year period, and the company owning the individual franchise must be controlled by a licensed pharmacist.
There are currently 1,300 Shoppers locations across the country, according to the company’s website.
Getting classes “certified” by a court is often where class actions fail, said Erik Knutsen, a professor at Queen’s University’s Faculty of Law.
“A hurdle a lot of class actions don’t get over is determining whether there are actually common issues,” said Knutsen.
If a judge does certify the class action, that doesn’t mean they’re ruling on the merits of the case — just that there’s an identifiable class of people — Knutsen explained.
In previous decades, getting a class certified meant a suit would most likely be settled before any trial, said Knutsen. Now, that’s less common.
“Defendants are a lot more willing to go to the wall with these things now. A decade ago, if a class got certified, most defendants would just settle,” said Knutsen.
Under Ontario’s Class Proceedings Act, to get the class certified, claimants need to prove that there’s an identifiable class of people, with common legal issues, and that a class action is the best way to resolve the common issues.