Healthy Skepticism Library item: 17542

Warning: This library includes all items relevant to health product marketing that we are aware of regardless of quality. Often we do not agree with all or part of the contents.

Publication type: news

Consumer watchdog air concerns over Sigma reward program
International Business Times 2010 Mar 24
http://ibtimes.com.au/articles/20100324/consumer-watchdog-air-concerns-over-sigma-reward-program.htm

Full text:

Consumer group Choice has scored a sales promotional drive by Sigma Pharmaceuticals, claiming that the drug company is generating conflict of interests for pharmacist patronising the rewards program. Sigma defended its Sigma Rewards as merely offering “chemists the chance to own hovercraft, fine china and a host of other luxury goods.

The program drew 1500 pharmacists across the country to collect one reward point for every dollar spent on Sigma products. The sales pitch has so far amassed $1.3 billion of profits for the drug manufacturer, and is considered as one of the largest business-to-business loyalty programs in Australia.

However, Choice spokesman Christopher Zinn said that he feared that the program could influence merchandise advice dispensed by pharmacist to consumers. He noted that pharmacists are highly-trusted members of society and their “opinions are sought and relied on by the public.”

Mr Zinn added that, “One would bound to think that the presence of a rewards scheme would unduly influence the choices available to consumers.” He said that chemists are hoped to make the correct measures so as to belie any observation that incentives will have impacts on their impartiality and professionalism.

He noted that active members of Australian Self Medication Industry (ASMI) are obliged by its codes to pass up gifts to doctors and pharmacists. Nonetheless, Mr Zinn conceded that Sigma, though eligible to join, is a non-member of ASMI, and cannot be covered by the association’s code of conducts.

He also stressed that the Pharmacy Guild of Australia does not bar its members from accepting gifts offered by drug companies’ loyalty programs. Guild spokesman Greg Turnbull affirmed that “pharmacists are entitled to negotiate favourable terms of commerce for their businesses.”

Mr Turnbull defended his colleagues and said that “No responsible pharmacist would allow themselves to be induced to supply inappropriate or excessive quantities of therapeutic goods.”

Still yet, Sigma incentives are mostly lucrative for pharmacists and generate huge volumes. Its website lures hits under the slogan “Whatever you want, whenever you want it”, and pharmacists looking for luxurious splurges can claim points for intended water-skiing holidays in Dubai. The website even comforts its targeted patrons that “We’ll turn your dreams into reality.”

Lately though, Sigma’s financial standing is under scrutiny following the company’s decision to delay its full-year report set for release this week. It cited “various unresolved issues” cropping up from the audit of its financial statements.

In that relation, the Herald Sun had hinted in its recent report that the company may be experiencing additional financial pressure in the wake of the recent collapse of Allco Finance Group.