Co-ops Protect Local Pharmacies
MADISON, Wis. (April 8, 2010) – Cooperative Network opposed legislation that would hurt small, rural pharmacies. Legislation to allow prescription drugs to be sold below cost was defeated 3-2 at an April 6 executive session of the Senate Committee on Public Health, Senior Issues, Long Term Care, & Job Creation. This legislation appeared to be principally sought by Wal-Mart.
Cooperative Network President and CEO Bill Oemichen thanked Sen. Kathleen Vinehout (D-Alma) for her leadership in protecting these rural pharmacies from predatory pricing.
“Cooperative Network’s larger position is that predatory pricing of any product is unhealthy for the marketplace and only benefits companies that can wage a war of attrition until their competition is eliminated and they can control the market,” said Oemichen. Oemichen administered this law as the former top consumer protection official for the State of Wisconsin.
Under current law all merchandise is subject to the prohibition against sales below cost with only gasoline, alcohol, and tobacco having an additional mandatory minimum markup above cost.
Sen. Vinehout provided the committee with Legislative Council clarification that there is no minimum profit or “markup” required by Wisconsin law for prescription drugs. The memo also quotes that the purpose of the law is: “support of fair competition promotes stability, prevents disruption, and creates consumer benefit through sustained long-term competition.” This clarification may in fact, result in some prices being lowered immediately.
Along with Sen. Vinehout, the bi-partisan vote against the legislation also included Sen. Dale Schultz (R-Richland Center) and Sen. Dan Kapanke (R-La Crosse). |
