"A bottle of ordinary vitamin B2 sells me for 26 yuan6, and the highest sales of the same model on the Internet are less than 8 yuan, and the cheapest one is only about five yuan. Speaking of the recent experience of buying medicine in an offline pharmacy, Xiao Meng still can't hide his excitement.
In the current diversification of drug sales channels, it is not incomprehensible that there is a certain price difference for the same drug. For Xiao Meng, the absolute price difference between 26 yuan and 5 yuan is not unaffordable, but "the difference is one or two times, and the difference is four or five times according to the current price, as a consumer, it is a feeling of 'backstabbing'."
Vitamin B2 purchased by Xiaomeng Photo courtesy of the interviewee
There are not a few consumers like Xiaomeng who have had similar experiences. On consumer complaint platforms and public reports in recent years, the price difference of the same drug ranges from one or two times to more than 20 times. Why is there a price difference of several times between drugs with the same generic name, the same brand, the same dosage form, and the same specification? Is it reasonable and legal?
The problem of drug price spread has existed for many years, and it has encountered a "drug assassin"?
Recently, the reporter consulted an offline pharmacy in Shanghai for a domestic anti-influenza drug oseltamivir dry suspension (0.36g/box) as a consumer, with a price of 78 yuan. If you place an order for the same medicine in this store on a takeaway platform, plus the shipping fee is nearly 70 yuan, there is a price difference but it is not obvious.
In contrast, in other online pharmacies on an e-commerce platform, the price of the same anti-influenza drug ranges from 17 yuan to 73 yuan. If you compare it according to 17 yuan, the difference is as much as five times. Previously, some media reported in January 2021 that the price of a single tablet of a domestic brand of thymus peptide enteric-coated tablets in offline pharmacies in Shanghai was 22 times that of online online platforms.
Some consumers have complained about the drug price difference on the complaint platform
On the consumer service platform Black Cat Complaints, the reporter saw that many consumers complained about the price difference of the same drug. On social platforms, many netizens also posted about their price differences when buying the same drug in different retail channels. It can be found that the price difference between online and offline drugs can be basically divided into two categories, one is the price difference between the offline pharmacy and the online sales platform of the pharmacy, and the other is the price difference between the offline pharmacy and the sales platform of other pharmacies.
Some consumers lamented that they encountered the "assassin" of drug price difference on social platforms
Judging from the details of the complaint and appeal, consumers who buy drugs can accept a certain price difference, but in the face of a multiplied price difference, there is a bad experience of "becoming a big wrongdoer". Especially for the situation that there is a price difference between offline pharmacies and their own online sales platforms, some consumers believe that offline pharmacy sales staff should inform consumers of this situation. There are also consumers who are worried about whether the quality of the products can be guaranteed by the lower price of drugs, and feel confused as buyers.
Why are the prices of the same drug different? Industry insiders said that there are many influencing factors
For example, since 1996, the mainland has adopted the method of setting the maximum retail price slightly below the market price and gradually reducing the drug price to manage drug prices.
It was not until 2015 that the National Development and Reform Commission and other seven departments jointly issued the "Notice on Printing and Distributing Opinions on Promoting Drug Price Reform", stipulating that from June 1, 2015, in addition to the government-guided prices for narcotic drugs and Class I psychotropic substances, the drug prices set by the original government will be cancelled, and the prices of drugs in retail pharmacies will be set by operators independently according to operating costs and market supply and demand.
In the context of market-oriented operation, the retail price of drugs is affected by multiple factors such as operating costs, supply chain, market strategy, taxation, services, and location, which naturally produces large or small price differences.
Li Zihao, a researcher at the China Association of Chain Pharmacy, said that the price of drugs in brick-and-mortar pharmacies is usually higher because of higher operating costs. Taking Shanghai, Suzhou and other cities as examples, a pharmacist's salary is 10,000 yuan per month, plus the cost of rent, water and electricity, etc., the cost of different parts of the same city may be different, which will eventually be reflected in the price of drugs. In contrast, online pharmacies may only have warehousing and distribution costs.
Deng Yong, head of the legal and commercial team of Beijing Health, pointed out that physical pharmacies are often regional, while online pharmacies are oriented to the national market and have a large transaction volume. In order to drive sales, online pharmacies may also cooperate with the platform to carry out preferential activities, and the price of the same drug may be further reduced.
"Unlike the rules of the past when the government controlled the price of drugs by 15%, the pricing principle of drugs is more complex. Depending on the market situation, a pharmacy deals in products that include negative gross margins, low margins, and high gross margins. If the cost of a drug is five yuan, in order to seize the market, it is okay to sell it for four yuan at a loss. Cang Chun, a professional manager who has served as the general manager of many of the top 100 chains, believes that the price difference of drugs is a market behavior, and generally speaking, even if there is a price difference between those brand drugs in different channels, it will not be particularly large, because its cost is very transparent across the country.
However, Cang Chun also pointed out that some pharmacies that sell low-cost drugs do also have suspicions of malicious competition, such as selling expiring drugs at low prices. In addition, some small pharmacies will choose to sell online at a low price, on the one hand, such pharmacies are small in scale and have tax exemptions in some places. On the other hand, such pharmacies do not make a profit by selling drugs, but rather sell pharmacies.
Cangchun introduced that in recent years, many chain pharmacies have expanded their scale through the acquisition of small pharmacies, and for these small pharmacies, after the sales of pharmacies are high, they can have higher bargaining conditions when they are acquired in the future. In other words, this kind of pharmacy does not make money by selling the drug itself, and even the medicine can be sold at a loss, but it needs to build up the scale and make money from being acquired.
For the price of the same drug in physical pharmacies and online sales platforms of physical pharmacies, Cang Chun revealed that in a chain pharmacy, the two departments are often responsible for these two businesses, both of which have different ways of playing in order to flush sales, and there will be different prices in the process, "This is not a good phenomenon."
In the event of a "price difference assassin", can consumers request a return for a refund?
Judging from the analysis of industry insiders, the price difference has certain realistic factors, and in most cases it is understandable market behavior, but from the perspective of consumers, after discovering the price difference, they often have the feeling of encountering a "price assassin" like Xiaomeng.
So, when consumers find the price difference, can they apply for a return or refund on this ground? In this regard, lawyer Daniel Zhang, founder of Medical Law Exchange, believes that drugs are now freely priced and regulated by the market. Normally, as long as the price of the drug is clearly marked and there is no price gouging, the price difference alone cannot be legally supported for a refund or return.
"If consumers think that the price of the drug is obviously unreasonable, they can try to negotiate with the pharmacy, or consider complaining to the consumer association or the regulatory department, so that the relevant parties can intervene in the investigation and collect evidence to determine whether the price is reasonable. Daniel Zhang said.
Deng Yong also stressed that from a legal point of view, the spread cannot be said to be illegal. Unless there is an extremely low or high price, if there is a consumer report, the relevant authorities may step in. In addition, the market supervision department also has routine unannounced inspections, and if it is found that the price difference is too large, it may involve some unfair competition, price fraud, etc., and will also be dealt with in accordance with relevant laws and regulations.
So, do offline pharmacies have the obligation or responsibility to inform consumers of the price difference between online and offline? Deng Yong believes that according to the Consumer Rights Protection Law, consumers have the right to know, the right to choose and the right to consent. For the seller, the price should be clearly marked, but it is not possible to require every salesperson to have to inform the price difference between different sales channels.
Daniel Zhang believes that in real life, there are many sales channels for a drug, and each salesperson may not be able to grasp the different sales prices of each channel, so this requirement is not realistic. If you are a price-sensitive consumer, it is best to shop around when buying drugs and look for the most cost-effective purchase channel.
(Xiao Meng is a pseudonym)
Source: The Paper reporter Li Xiaoxiao