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RPM in the UK ends with removal of exemption for OTC medicines

United Kingdom
15/05/2001
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The Restrictive Practices Court today made an order ending the 30-year exemption of branded over-the-counter medicines from a general ban on resale price maintenance. The order was made following the decision by the Community Pharmacy Action Group to withdraw from the OFT's court action to remove the exemption granted to OTC medicines in 1970. The OFT's action was taken following a review of the UK medicines market from which it concluded there had been a material change in circumstances since 1970 and that RPM was no longer appropriate.

On Friday, Mr Justice Buckley, the presiding judge, indicated that the court's preliminary view was that, having carefully considered the extensive evidence provided, there was insufficient proof that a substantial number of community pharmacies would close and that the range of products available to the public would be significantly reduced, so as to justify the retention of the exemption.

Most RPM in the UK was prohibited by the Resale Prices Act 1964. The Act however provided that the Restrictive Practices Court could exempt goods from this prohibition. OTC medicines were exempted by an order of 1970. The removal of this order ends RPM in the UK. In 1997, the court struck down a similar order exempting books from the ban on RPM.

For further information, please contact either David Marks or Susan Barty by e-mail at [email protected] or [email protected] or alternatively by telephone on +44 (0)20 7367 3000.

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