The Kerala State Drugs Control department has initiated measures against pharmacies that display misleading discount advertisements on medications. Following a complaint from the All-Kerala Chemists and Druggists Association (AKCDA),drug inspectors and assistant drug controllers are now authorized to investigate whether these shops are influencing consumer purchasing decisions through deceptive marketing.
This enforcement action stems from a recent circular issued by K . Sujith Kumar, the State Drugs Controller, which was prompted by a ruling from the Kerala High Court. The court upheld the authority of the State Drugs Controller to require pharmacies to submit an affidavit when applying for or renewing their drug licenses. This affidavit must confirm that they will refrain from displaying discount boards with vague or misleading claims about drug prices.
On June 19, the court clarified that while pharmacies are not prohibited from selling drugs below the maximum retail price,they cannot present misleading advertisements regarding discounts. The circular, dated July 17,explicitly states that medical shops must avoid displaying any boards,banners, or digital advertisements that contain ambiguous claims about drug pricing . All communications related to drug prices must be clear, honest, and verifiable.
As part of this crackdown, a drug inspector in Alappuzha has already begun inquiry into a newly opened pharmacy in the district. The action reflects ongoing tensions between traditional pharmacies and newer establishments that offer steep discounts ranging from 20% to 80% on medications. Some of these newer pharmacies have also sought legal recourse from the High Court.
Concerns about the quality of drugs entering Kerala have been raised amid this competitive landscape. A.N. Mohan,president of the AKCDA,emphasized that both manufacture and sale of drugs are strictly regulated under the Drugs and Cosmetics Act and the accompanying rules. He pointed out that National Pharmaceutical Pricing Authority controls medicine prices,with margins set between 8% and 16% for controlled medications like insulin,and between 10% and 20% for non-controlled products.
“When retail chemists receive a 16% margin on products like insulin,how can new-generation shops offer discounts of 25% to 80%?” Mohan questioned. He suggested that such practices might either be an attempt to undermine established retail chemists or to out quality . He also noted that misleading advertisements are prohibited under the Drugs and Magic Remedies (Objectionable Advertisements) Act.
The Kerala State Drugs Control department's actions reflect a broader effort to ensure transparency and fairness in the pharmaceutical market . By enforcing regulations against misleading discount advertisements, authorities aim to protect consumers while maintaining a level playing field for all pharmacies operating in the state.
