Healthy Skepticism Library item: 17543
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
Lekakis G
Watch on chemist reward scheme
The Herald Sun 2010 Mar 24
http://www.heraldsun.com.au/business/watch-on-chemist-reward-scheme/story-e6frfh4f-1225844496833
Full text:
THE pharmacy profession has defended a sales incentive scheme operated by Sigma Pharmaceuticals which offers chemists the chance to own hovercraft, fine china and a host of other luxury goods.
Under the program, known as Sigma Rewards, 1500 pharmacists across the country accumulate one reward point for every dollar of Sigma product they purchase from the drugs maker.
More than $1.3 billion worth of products were sold through the program last year, making it one of the largest business-to-business loyalty programs in Australia.
However, consumer group Choice has questioned whether Sigma Pharmaceuticals may have created perceived conflicts of interest for pharmacists who participate in the rewards program.
Choice spokesman Christopher Zinn said he was concerned the program had the potential to influence product advice made by pharmacists to consumers.
“Pharmacists are highly trusted members of society – their opinions are sought and relied on by many people,” he said.
“One would hate to think that the presence of a rewards scheme would unduly influence the choices available to consumers.
“I would hope that chemists take appropriate steps to avoid the perception that any incentives could affect their impartiality and professionalism.”
2Members of peak industry associations like the Australian Self Medication Industry are required under their codes of conduct to avoid making gifts to doctors and pharmacists.
Although it is eligible to join ASMI, Sigma is not a member and therefore does not have to adhere to the code.
The Pharmacy Guild of Australia does not prevent its members from receiving gifts through loyalty programs run by drugs suppliers.
“Pharmacists are entitled to negotiate favourable terms of commerce for their businesses,” Pharmacy Guild spokesman Greg Turnbull said.“No responsible pharmacist would allow themselves to be induced to supply inappropriate or excessive quantities of therapeutic goods.”
But the incentives provided by Sigma are often lucrative for pharmacists who generate big volumes.
The Sigma Rewards website markets the program under the slogan “Whatever you want, whenever you want it”.
Pharmacists can redeem points for water-skiing holidays in Dubai and all manner of luxury services.
The website states: “Maybe you’re looking to build an art collection or dig a cellar to house your best wine. Perhaps you need some fine china, or the world’s best pram for your new grandchild … We’ll turn your dreams into reality.”
Mystery surrounds Sigma’s financial health after the company deferred the release of its full-year accounts this week because of what it said were “various unresolved issues” arising from the audit of its financial statements.
BusinessDaily has reported that the company may be under added financial pressure following the collapse of Allco Finance Group.
