Different Classes of Trade
The Healthcare Distribution Management Association believes that manufacturers' policies and
procedures must ensure that all classes of trade and individual customers are treated fairly and
equitably regarding prices, terms, promotions, deals and package sizes within a particular level
of distribution. HDMA encourages a marketing approach that is least disruptive to normal
business functions and is equal among members of each distribution level.
Changes in the pharmaceutical and healthcare products industry, as well as changes in
consumers' buying habits, have led to the evolution of a wider variety than ever before of
specialized healthcare product distributor formats utilized in the distribution of pharmaceutical
and health care products.
The historic distinctions among traditional classes of healthcare product distributors have
become blurred. Healthcare product manufacturers should be aware that, while there may be
some product distributors utilizing various specialized distribution formats which may have their
own unique characteristics, these different classes of product distributors are indeed
competitors in the distribution and sale of pharmaceutical, healthcare and other products to
healthcare providers. Healthcare product manufacturers should therefore recognize the
importance of dealing fairly, consistently and lawfully with all healthcare product distributors.
The Robinson-Patman Act provides that in the pricing and promotion of products,
manufacturers should not differentiate among competing wholesale customers within the same
market area based on artificial "class of trade" or other types of distinctions. A manufacturer, in
fashioning pricing and discount programs, must carefully consider how a customer performs in
the marketplace and not what functional label the customer uses to identify itself. If a
manufacturer develops prices, terms, promotions, deals or package sizes designed to meet the
marketing needs or desires of a particular class of trade or specialized wholesaler format, the
manufacturer should inform all competing wholesale customers within the same market area,
regardless of class of trade or label, of their availability and should grant these healthcare
product distributors an equal opportunity to qualify for these offerings.
Healthcare product distributors also should not request special prices, allowances or services
from manufacturers or their agents if they know that to grant such prices, allowances or
services would force the manufacturer to discriminate unlawfully against other customers within
the same market area. This will promote fairness within the industry and benefit the consumer.
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