Kochi: High court has upheld a circular issued by the drugs controller requiring medical shop licensees to furnish an affidavit while applying for or renewing a drug licence, undertaking that they will not display discount boards containing misleading or vague claims regarding the prices of medicines sold in their shops.Justice Bechu Kurian Thomas passed the order while dismissing two petitions challenging the circular, observing that it does not restrict pharmacies from offering medicines at prices below the Maximum Retail Price (MRP), but is intended only to curb misleading boards.The petitions challenged the circular of Sept 4, 2024, by questioning the drugs controller’s authority to issue such directions. HC also considered a petition seeking implementation of the circular.The petitioners contended that they serve public interest by offering medicines at reduced prices, foregoing a portion of their profits and selling drugs below MRP. On the other hand, the plea challenging the display of discount boards argued that such claims were misleading the public.In a counter-affidavit, the drugs controller justified the circular, stating that it was issued to curb unhealthy practices in the pharmaceutical sector and forms part of a phased reform process. The department clarified that it is not opposed to pharmacies offering discounts to customers, but only to misleading advertisements and discount boards. According to the affidavit, claims of discounts of up to 80% displayed by some pharmacies mislead consumers and unfairly influence purchasing decisions. It was also pointed out that certain medicines sold at heavily discounted rates are sourced from outside the state and concerns have been raised regarding their quality.HC observed that the authorities had not prohibited pharmacies from offering discounts. The prohibition is only against misleading display boards relating to discounts. HC further held that the licensing authority is empowered to ensure that licensees conduct their business without misleading the public and, therefore, requiring an affidavit undertaking not to display misleading discount claims cannot be termed arbitrary or an unreasonable restriction on the right to carry on business.
