A former franchise owner has launched a proposed class-action lawsuit against Shoppers Drug Mart over alleged “unethical corporate practices.”
According to the court filing, the lawsuit was filed in Ontario Superior Court last week. It represents franchise owners (also pharmacists) whose agreements have been terminated since 2014 and current franchise owners in Ontario.
The class action accuses the Canadian retail pharmacy of “unsafe and unethical” corporate practices like cutting support staff hours, imposing quotas on the volume of medication reviews or “Medschecks,” public naming and shaming of employees who fail to meet “arbitrary” performance targets, and other policies aimed at increasing revenue.
The lawsuit says these practices have allegedly put pharmacists in an “irredeemable conflict of interest.”
Aly Haji — a lawyer with law firm Ricketts Harris LLP, which filed the proposed class action — told Daily Hive that these alleged practices force pharmacists to prioritize corporate metrics like Medschecks over patient care and safety.
“Pharmacists risk losing their franchises – their livelihood – if they do not conform. This places them in an irredeemable conflict of interest,” he explained over email.
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According to the claim, Shoppers had allegedly revoked or not renewed lead plaintiff Sivajanan Sivapalan and others’ franchises for criticizing the pharmacy’s alleged unethical practices.
The court filing states that the Loblaw-owned retail pharmacy told Sivapalan that his franchise in Beamsville, Ontario, had been terminated in January 2023 without providing a reason for its decision.
“Shoppers Drug Mart has taken no action to address the clear risks posed by the Corporate Practices to patient safety, the resulting breach of Franchisees’ professional and ethical obligations, and the consequent risk of regulatory scrutiny and sanction by the Ontario College of Pharmacists,” reads the claim.
“Instead, Shoppers Drug Mart has more aggressively implemented the Corporate Practices to maximize profits.”
The claim seeks damages for Shoppers’ alleged breaches of contract and “duties of fair dealing and good faith” in an amount to be determined by the court later.
The proposed class-action lawsuit hasn’t been certified or tested in court.
“This case has no merit whatsoever, and we intend to vigorously defend it,” Loblaw spokesperson Dave Bauer told Daily Hive in an email statement.
The case comes after a February CBC News investigation that revealed how some former employees are accusing Shoppers Drug Mart pharmacy of abusing Ontario’s medication reviews program, MedsCheck.
They allege the retail pharmacy is pressuring staff to bill the government for consultations patients don’t need.