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Sobeys earns victory in legal challenge on pharmacy rewards

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EDMONTON, Alberta — Canadian food and drug retailer Sobeys Inc. has prevailed in a legal challenge to enable British Columbians to once again collect reward points on pharmacy purchases.

Sobeys reported Monday that on July 25 the Supreme Court of British Columbia struck down the College of Pharmacists of BC bylaws that since Dec. 2, 2013, have prohibited pharmacy patients in the province from earning loyalty rewards, including Safeway’s Air Miles and Club Thrifty Foods Points on nongovernment-funded pharmacy prescriptions.

"We are delighted that as a result of our efforts, Safeway and Thrifty Foods’ pharmacy customers will once again be able to earn the rewards they enjoy to enrich their lives, help buy products and travel," Sandra Aylward, vice president of professional and regulatory affairs at Sobeys, said in a statement. "Safeway and Thrifty Foods will now move quickly to reinstate our Safeway Air Miles and Club Thrifty Foods Points reward programs so that pharmacy customers at both banners will once again be able to earn rewards on their nongovernment-funded pharmacy purchases."

British Columbians that shop at Safeway, Thrifty Foods and Sobeys banner stores will also continue to earn loyalty rewards for purchases made throughout the rest of the store, the company added.

Sobeys also has made progress with a legal challenge in Alberta. Early last month, the Alberta Court of Queen’s Bench granted a stay of the Alberta College of Pharmacists ban that would have prohibited patients from collecting reward points on pharmacy purchases starting June 10.

Albertans who collect reward points on pharmacy purchases, including Air Miles and Club Sobeys, will be pleased to learn that the Alberta Court of Queen’s Bench has granted a stay of the Alberta College of Pharmacists ban that would have prohibited patients from collecting reward points on these purchases starting June 10.

Justice J.J. Gill of the Alberta court granted a stay of the implementation of the inducements prohibition, pending the hearing of the judicial review application that’s slated to be heard in January 2015.

"As a result of this ruling, Albertans will be able to continue to earn loyalty rewards on their pharmacy purchases, including Air Miles Reward Miles at Safeway stores and Club Sobeys points at Sobeys locations across the province," Aylward stated.

Sobeys had announced in mid-April that it planned to sue the Alberta College of Pharmacists over an impending resolution that would prevent pharmacy patients from earning loyalty points on pharmacy purchases.

Under amendments to the ACP Code of Ethics, Standards of Practice for Pharmacists and Pharmacy Technicians, and Standards for the Operation of Licensed Pharmacies approved by the ACP council on April 10, "A regulated member must not offer or provide or be party to the offering or provision of an inducement to a patient where the inducement is offered or provided on the condition that the patient obtains a drug product or a professional service
from the regulated member or licensed pharmacy." The amendments defined "inducement" as a reward, gift (including cash), prize, coupon, points or other elements in incentive or loyalty programs that can be redeemed for rewards, gifts, cash, prizes, or other goods and services.

Later in April, Sobeys was part of a coalition that launched a petition urging the Alberta government to quash the ACP’s ban on loyalty points for pharmacy purchases. Sobeys noted that the "I Earned It" petition provided a voice for Albertans opposed to the ban. The company reported that almost 75% of Albertans surveyed think it’s unfair to ban loyalty rewards, and more than 38,000 Albertans have signed the petition for the provincial government to reject the ban.


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