Leclerc wins 1st-set in superstore price cuts

An appeal court in the eastern French city of Colmar has rejected an April decision of a lower court and ruled in favor of the Leclerc supermarkets, which had placed advertisements calling for changes in the law to allow the sale of non-reimbursable drugs in its stores. The campaign is fiercely opposed by the pharmacy federations. The action against Leclerc was brought by the USPO and UNPG pharmacy associations, Univers Pharmacie and Directlabo SA. Leclerc was ordered to withdraw its TV adverts by a Colmar tribunal on April 21.

The TV advert argues that the sale of non-reimbursable medicinal products in Leclerc's super- and hypermarkets would help reduce prices. The head of the chain, Michel-Edouard Leclerc, said that he could sell drugs at prices 25% below the average if the government agrees to open the mass distribution market to the non-reimbursable drug sector (Marketletters passim).

The appeal court ruled the campaign did not entail any denigration of pharmacies and that, even though the advertising images were slightly aggressive, they did not exceed the limits allowed "in matters of humorous expression." In addition, the court noted that, in fact, the campaign was predicated on a change in legislation which was quite hypothetical.