CCI warns chemists & drug manufacturers of penalties for unfair trade practices
Updated: Jan 31, 2014 04:37:47pm
New Delhi, Jan 31 (KNN) The Competition Commission of India (CCI) today has asked chemist associations and the drug manufacturing industry to desist from unfair trade practices and that non-compliance of this order would involve severe penalties, even leading to prosecution.
According to a CCI notification, the Commission found certain practices in cases of associations of chemists, druggists, stockists, whole-sellers and manufacturers at All India level, State level and District level as anti-competitive.
The CCI notification said that, “Issuance of No Objection Certificate or letter of consent by such associations for opening chemist shop/being appointed stockists/distributor/whole-seller,” will be considered anti-competitive.
Further, compulsory payment of PIS charges by pharmaceutical firms/manufacturers to associations for release of new drug/new formulation; and fixation of trade margins at different levels of sale of drugs/medicines will also be considered unfair trade practice.
Issuance of - instructions to the chemists/druggists/shops/stockists/whole-sellers/manufacturers restricting discounts on sale of drugs in retail or wholesale; and boycott calls by the associations to their members against any enterprise for not following the instructions of association, are also considered anti-competitive by the CCI.
“Penalties were imposed by the Commission on such trade associations of chemists and druggists for violation of provisions of Competition Act,” CCI said in its notice.
“It is brought to the notice of the public that the Commission had issued cease and desist order against the associations directing them not to indulge in such illegal practices. Non-compliance of the orders of this Commission involves severe penalties and can lead to prosecution,” CCI added. (KNN/SD)
According to a CCI notification, the Commission found certain practices in cases of associations of chemists, druggists, stockists, whole-sellers and manufacturers at All India level, State level and District level as anti-competitive.
The CCI notification said that, “Issuance of No Objection Certificate or letter of consent by such associations for opening chemist shop/being appointed stockists/distributor/whole-seller,” will be considered anti-competitive.
Further, compulsory payment of PIS charges by pharmaceutical firms/manufacturers to associations for release of new drug/new formulation; and fixation of trade margins at different levels of sale of drugs/medicines will also be considered unfair trade practice.
Issuance of - instructions to the chemists/druggists/shops/stockists/whole-sellers/manufacturers restricting discounts on sale of drugs in retail or wholesale; and boycott calls by the associations to their members against any enterprise for not following the instructions of association, are also considered anti-competitive by the CCI.
“Penalties were imposed by the Commission on such trade associations of chemists and druggists for violation of provisions of Competition Act,” CCI said in its notice.
“It is brought to the notice of the public that the Commission had issued cease and desist order against the associations directing them not to indulge in such illegal practices. Non-compliance of the orders of this Commission involves severe penalties and can lead to prosecution,” CCI added. (KNN/SD)
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