Shoppers Drug Mart faces proposed class action for alleged 'unethical corporate practices'
CBC
A former Shoppers Drug Mart franchise owner has filed a proposed class action lawsuit against the Canadian retail pharmacy chain, and its parent company Loblaw, alleging the companies imposed "unsafe and unethical" corporate practices on franchise owner pharmacists to increase profits.
The claim was filed in Ontario Superior Court last week and intends to cover both franchise owners whose agreements have been terminated since 2014 and current franchise owners in Ontario.
It has not yet been certified or tested in court.
The crux of the lawsuit concerns how corporate practices like imposing targets on the volume of medication reviews, cutting back support staff hours, and other mandates to increase revenue, have allegedly put Shoppers Drug Mart franchise owners, who are also pharmacists, in an "irredeemable conflict of interest."
"When you put policies on the associate owner that require [them] to breach their professional obligations at the risk of losing their franchise ... you place them in a conflict of interest between their obligations to patients and their obligations to the business," said lawyer Aly Haji, from Ricketts Harris law firm, which filed the proposed class action.
The consequences of that conflict could include a pharmacist having their licence suspended or revoked, according to the lawsuit.
Loblaw and Shoppers Drug Mart have not yet filed statements of defence in the case. But in an email statement, Loblaw spokesperson Dave Bauer told CBC News "this case has no merit whatsoever, and we intend to vigorously defend it."
The lawsuit was filed in the wake of a CBC News investigation, which revealed how some former Shoppers Drug Mart pharmacy employees believe the company is taking advantage of Ontario's medication reviews program, MedsCheck, by pushing staff to bill the government for consultations patients don't necessarily need.
And how despite the chain's president denying the existence of targets for those services, dozens of internal records from frustrated pharmacists showed the chain has targets for those professional services and corporate management pressured owners to meet those numbers.
The Ontario College of Pharmacists has since said it's working with a legal team to explore its options after thousands of pharmacy employees came forward to share "deeply troubling" stories about corporate pressure to perform those billable services.
In the case of former franchise owners like the lead plaintiff, Sivajanan Sivapalan, the claim alleges he and others had their franchises revoked, or not renewed, for criticizing the allegedly unethical practices.
According to the court filing, Shoppers informed Sivapalan that his franchise in Beamsville, Ont. had been terminated in January 2023. Shoppers did not provide Sivapalan any reasons for its decision.
"He was distraught when this happened. It was a very difficult time in his life," said Haji about his client.
"[Sivapalan] just wanted to seek justice and see redress for the pain and the kind of difficulties that many associates are going through."
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