Shoppers Drug Mart is facing a class-action lawsuit proposed by current and former franchise owners of the retail chain who allege that parent company Loblaw engaged in corporate practices that placed them in an “irredeemable conflict of interest” and jeopardized customer service. the patients.
The lawsuit, which has not yet been certified, was filed last week in the Ontario Superior Court of Justice by the Toronto-based law firm Ricketts Harris LLP, and lists the plaintiffs as current and former pharmacists whose agreements with the company they ended after 2014. .
In a statement of claim reviewed by CTV News Toronto, the class action alleges that a series of corporate practices introduced by Loblaw after its acquisition of Shoppers Drug Mart in 2014 created “risks to patient safety and pose a significant risk of causing harm.” to the patient”.
Some of those practices, according to the lawsuit, include imposing targets on MedsCheck (Ontario’s medication review service) appointment volume and minimizing support staff hours in an effort to increase revenue and decrease costs. .
The complaint notes that Shoppers Drug Mart can and has terminated its contracts with franchise owners who “breach key obligations” or criticize its business decisions.
Sivajanan Sivapalan, an Ontario pharmacist and lead plaintiff in the lawsuit, reached an agreement with Shoppers Drug Mart to operate a franchise in Beamsville, Ontario. in 2011. He subsequently renewed his contract in 2014, 2017 and 2020.
The lawsuit alleges that after Sivapalan “expressed concerns” regarding corporate practices to Shoppers Drug Mart, their agreement was terminated without cause on January 23, 2023.
Additionally, since Loblaw acquired Shoppers Drug Mart, franchise owners say they have raised concerns about corporate policies and their “increased risk to patient safety.” But the complaint maintains that Shoppers Drug Mart and Loblaw have taken “little or no action” to address the concerns.
Following a meeting on March 25, the Ontario College of Pharmacists (OCP) announced a “Zero tolerance” policy for business practices that impede pharmacists “the ability to provide effective care” after hearing from “thousands” of pharmaceutical professionals.
In a press release, which did not specifically name any retail pharmacy chain, the OCP said it found reports of “inappropriate pressure” to make MedsCheck appointments “deeply concerning.”
“The College will consider all available tools to address those concerns,” OCP said.
To that end, the complaint says OCP’s policy puts franchise owners at “increased risk of regulatory scrutiny and sanction” by Shoppers Drug Mart.
“Our high-level goal is to seek justice for Shoppers Drug Mart franchisees (pharmacists) who have been forced to practice under corporate policies that place them in an irredeemable conflict of interest, affecting their ability to provide safe and effective care. to the patient”. senior lawyer Andrea Sanche told CTV News Toronto in an email.
When asked for comment on the lawsuit, Loblaw told CTV News Toronto that the case has “no merit” and that the company plans to “vigorously defend itself.”
The class action lawsuit seeks, among other things, damages for Loblaw’s alleged breaches of contract with current and former franchise owners, the amount of which has not yet been determined.