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Applying the Advertising Code rules: price information
This Guidance explains part 9 of the Code, which has requirements about advertising the price of prescription medicines and certain pharmacist-only medicines to the public.
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Purpose
Read this section of the guidance together with Part 9 of the Code.
Prescription and pharmacist-only medicines contain a substance that is included in Schedule 3, 4 or 8 of the Poison Standard (but not in Appendix H). They are prohibited from being advertised to the general public.
Part 9 of the Code sets out the conditions in which the price of prescription and certain pharmacist-only medicines only can be lawfully advertised.
Only prices for registered medicines may be advertised. Price information about ingredients, chemical or therapeutic classes of ingredients or compounded medicines included in these schedules of the Poisons Standard must not be advertised.
The benefits of facilitating this information include to:
- promote competition amongst retailers
- provide additional information for consumers to consider when purchasing their medicines.
The conditions of Part 9 of the Code must be met for this form of advertising to be lawful.
Who can publish price information?
Price lists of prescription-only and pharmacist-only medicines can be made available to the public under certain conditions.
Price information can only be produced and distributed by:
- retail pharmacists or their agents
- pharmacy marketing groups
- certain authorised medical practitioners that are approved under section 92 of the National Health Act 1953.
Pharmacy marketing groups (banner groups) are permitted to provide price information on behalf of their marketing group. All applicable Code requirements must be met.
All other medical practitioners and health professionals cannot provide price information to the public.
What format can price information be published in?
Price information | Forms of advertising |
---|---|
can be published or disseminated in... |
|
can't be published or disseminated in... |
|
can't be about unregistered medicines (products not on the ARTG) | cannot be advertised or included in a price list |
Note: Special requirements are specified for online price information identified through a search function.
Search function price lists
Price lists can be published or disseminated through searchable functions such as an electronic sales system. In this instance the search result must only produce:
- a list of the names of the searched for medicine
- a list of medicines that contain a searched for ingredient.
The results must be in alphabetical order.
How can price information be presented?
There are three conditions in the Code for how price information must be presented:
List size
A price list is intended to show a consumer what medicine they can purchase and at what price. This must be done in a way that does not influence the choice of a specific product.
The list of medicines must contain:
- 25 medicines or more, and
- the name and contact details of the retailer who is selling the product listed.
Alphabetical order
Medicines must be listed in alphabetical order by either:
- name of the medicine, or
- the names of active ingredients, or
- by schedule - see medicine group below.
Medicine group
Where the price list includes a range of medicines that are in different schedules of the Poison Standard, then the medicines can be grouped by schedule.
Each sub-list must contain three or more
- medicines from each schedule - in alphabetical order, and
- the name of the person who entered to medicine on the ARTG (the sponsor).
Description of medicines in price information lists
Section 34 of the Code provides for how medicines must be described in price information. They should be described using the name of the medicine as defined in:
- Therapeutic Goods Order No. 91 - Standard for labels of prescription and related medicines, or
- Therapeutic Goods Order No. 92 - Standard for labels of non-prescription medicines
as appropriate to the Schedule of the Poisons Standard for the medicine.
Price information for each medicine must include:
- the strength of each active ingredient as it appears on the label of the medicine
- the dosage form in which the medicine is presented
- the quantity in the pack
- the price for the relevant number of units of the sponsor's standard pack
- the relevant number of units of the sponsor's standard pack is either:
- one unit, or
- the maximum number of units that may be prescribed under the Pharmaceutical Benefits Scheme or Repatriation Pharmaceutical Benefits Scheme, where they permit more than one unit of the sponsor's pack to be prescribed.
- the relevant number of units of the sponsor's standard pack is either:
- A price list may include a statement that a prescription is required for particular medicines.
What do I avoid when presenting price information?
When preparing a price information list, you should avoid any presentation that may guide consumers to choose a particular medicine over another. That rule applies whether or not that particular medicine is also referred to in the price information.
In your price information list do not use:
- rewards or offers
- embellishments
- promotional claims
- comparative statements
- any reference to therapeutic uses
- photographs or other reproductions of medicines
- restricted representations in relation to any medicine
- different text sizes or fonts to draw attention to one product over others
- prescription or pharmacist-only medical devices.
For full details see the expanded form of this guidance in section 35 of the Code.
Example
Our prices will never be beaten - up to 70% off medicines!
BarryBobs Paracetamol 500mg - 90 tablets - $1.50
Beans Paracetamol 500mg + codeine 8mg - 40 tabs - $11.99
Beans Paracetamol 500mg + codeine 15mg - 30 tabs - $13.50
AppleTree amoxicillin/clavulanic acid 875/125mg - 12 capsules - $10.95
BobCats Paracetamol 500mg + codeine 10mg - 30 tabs - $11.50
Turnips Paracetamol 625mg + codeine 15mg - 50 tabs - $21.89
Carrots Paracetamol 500mg + codeine 30mg - 25 tabs - $20.70 - good for pain
Beans blood glucose test strips - box 200 - $10.99
Beans Pharmacy - 10 Bean Street Beansville NSW - 02 6123 1234
These factors do not meet requirements:
- use of a claim
- out of alphabetical order
- includes a non-scheduled device (the test strips)
- less than 25 medicines included in list
- general promotional statements are not permitted
- price lists must not include medicines that are able to be advertised to consumers (BarryBobs Paracetamol 500mg).
Medicines listed in the pharmaceutical benefits scheme (PBS)
Price lists which include a PBS subsidised medicine must include:
- an indication that the price is subsidised by the Australian Government
- the price only applies when prescribed for the medical conditions listed in the PBS Schedule for that medicine
- that actual condition must not be mentioned.
- the total purchase price for the medicine. This may be the discounted PBS (full or concessional) price up to the extent permitted by the PBS
- must be clearly identified as the general or concessional price.
- Both prices may be provided.
- must be clearly identified as the general or concessional price.
How can a pharmacy marketing group publish price information?
Section 36 of the Code provides how a pharmacy marketing group can publish price information. This ensures that 'house brands' sold by a retail supplier cannot be given prominence over other comparable brands.
When their price list includes both:
- a PBS subsidised medicine with a brand premium or therapeutic group premium, and
- the group's own generic medicine
that price information list must also include at least one other benchmark price brand of that medicine (where such products exist).
Example
Beans Group Price List – PBS Listed Medicines
Active Ingredient (Trade Name, Strength, Pack Size) – PBS discounted price (PBS concession price)
Erythromycin (Beans generic erythromycin, 250 mg, 25 capsules) - $17.50 ($5.80*)
Erythromycin (Original erythromycin, 250 mg, 25 capsules) - $21.50 ($12.80*)
Telmisartan (Beans generic telmisartan, 40 mg, 30 tablets) - $19.80 ($5.80*)
Telmisartan (Maroon telmisartan, 40 mg, 30 tablets) - $21.80 ($7.80*)
Telmisartan (Original telmisartan, 40 mg, 30 tablets) - $25.80 ($10.80*)
Telmisartan (Scarlet generic telmisartan, 40 mg, 30 tablets) - $19.80 ($5.80*)
*Purchase price is subsidised by the Australian Government for specific medical conditions as per the PBS schedule.
Available from Beans Pharmacies in Beansville, Mudville and Dustville.
These factors do meet requirements:
- the place where the goods may be purchased
- presentation in alphabetical order by active ingredient
- in alphabetical order in reference to active ingredient
- Beans telmisartan 40 mg is a benchmark price brand and another benchmark price brand is included.
These factors do not meet requirements:
- there is at least one other benchmark priced brand available for erythromycin that was not included
- Apples generic erythromycin, 250mg, 25 capsules - $17.50 ($5.80*)
- there are fewer than 25 medicines in the list.
Note: while some factors meet the requirements, overall it is non-compliant as there are factors that do not.
Page history
Minor updates, guidance on Samples and incentives (Part 7) and Restricted Representations (Part 8) published separately.
Original publication
Minor updates, guidance on Samples and incentives (Part 7) and Restricted Representations (Part 8) published separately.
Original publication