Priceline class action to challenge the controlling nature of Priceline’s current Franchise Model
The integrity of the pharmacy profession depends upon the ability of pharmacists to provide independent advice.
The Pharmacy Guild’s ‘Policy on Pharmacy Ownership’ states that “ownership and control should be solely in the hands of registered pharmacists”. Shielding pharmacists from external pressures and/or commercial considerations guarantees the public’s health and safety, and a high standard of national care.
A group of dissatisfied Priceline franchisees intend to launch a class action which alleges that Priceline’s franchise model affords Priceline an unacceptable level of control over their business. Franchisees will claim that the Franchise Agreement affords Priceline a level of control which amounts to restrictive trade practices, inhibiting their ability to maximise their pharmacy’s profitability. They will also claim the agreement requires franchisees to pay unfair fees; and provides Priceline’s parent company, API, with an undeserved benefit.
The class action’s objective will be to add value to the current franchisees’ investment by pressuring Priceline to provide fairer terms and to pay damages for any proven infringing conduct, including compensation for loss of profits.
Soon to be Lead Applicant in the case, Chris Lemon, who ran two Priceline stores in Sydney as well as one Independent pharmacy says;
“Our grievances stemmed from Priceline’s tendency to overpromise and underdeliver…. As owners of one independent and two Priceline pharmacies, we were able to compare the profitability of each… and reached the conclusion that it is Priceline’s franchise model itself which limited our ability to maximise our profits.”
Lemon says his problems with Priceline and API management came with the introduction of SAP in 2015.
“The SAP ‘upgrade’ was more of a downgrade… it coincided with the introduction of API’s auto-replenishment system and the many problems that came with it: ‘stock dumping’ and other issues with stock allocation; less transparency with regards to Net Instore Pricing; and discretionary rebates.”
“API circumvented our ability to maximise our profitability, denying us access to bulk and seasonal discounts. We tried, unsuccessfully to resolve our issues with Priceline – we sought legal advice to ensure others do not suffer loss as a result of the controlling provisions contained in Priceline’s franchise model.”
The representative proceedings will be a fully funded, Opt-In class action. Only individuals who sign a funding agreement will benefit from a positive outcome. You do not have to pay to participate and you have no negative financial exposure, even if the matter is unsuccessful. Your only contribution will come out of your ‘winnings’.
Both current and former Priceline franchisees are eligible to participate.
Levitt Robinson Solicitors is the law firm who will act on the franchisees’ behalf and has run seven (7) class actions from start to finish. All seven have been successful, with five substantial settlements and two succeeding in Court after trial.
Please get in contact with Class PR for more information on (02) 8267 9499 or contact@classpr.com.au or visit the links below:
Priceline class action to challenge the controlling nature of Priceline’s current Franchise Model
The integrity of the pharmacy profession depends upon the ability of pharmacists to provide independent advice.
The Pharmacy Guild’s ‘Policy on Pharmacy Ownership’ states that “ownership and control should be solely in the hands of registered pharmacists”. Shielding pharmacists from external pressures and/or commercial considerations guarantees the public’s health and safety, and a high standard of national care.
A group of dissatisfied Priceline franchisees intend to launch a class action which alleges that Priceline’s franchise model affords Priceline an unacceptable level of control over their business. Franchisees will claim that the Franchise Agreement affords Priceline a level of control which amounts to restrictive trade practices, inhibiting their ability to maximise their pharmacy’s profitability. They will also claim the agreement requires franchisees to pay unfair fees; and provides Priceline’s parent company, API, with an undeserved benefit.
The class action’s objective will be to add value to the current franchisees’ investment by pressuring Priceline to provide fairer terms and to pay damages for any proven infringing conduct, including compensation for loss of profits.
Soon to be Lead Applicant in the case, Chris Lemon, who ran two Priceline stores in Sydney as well as one Independent pharmacy says;
“Our grievances stemmed from Priceline’s tendency to overpromise and underdeliver…. As owners of one independent and two Priceline pharmacies, we were able to compare the profitability of each… and reached the conclusion that it is Priceline’s franchise model itself which limited our ability to maximise our profits.”
Lemon says his problems with Priceline and API management came with the introduction of SAP in 2015.
“The SAP ‘upgrade’ was more of a downgrade… it coincided with the introduction of API’s auto-replenishment system and the many problems that came with it: ‘stock dumping’ and other issues with stock allocation; less transparency with regards to Net Instore Pricing; and discretionary rebates.”
“API circumvented our ability to maximise our profitability, denying us access to bulk and seasonal discounts. We tried, unsuccessfully to resolve our issues with Priceline – we sought legal advice to ensure others do not suffer loss as a result of the controlling provisions contained in Priceline’s franchise model.”
The representative proceedings will be a fully funded, Opt-In class action. Only individuals who sign a funding agreement will benefit from a positive outcome. You do not have to pay to participate and you have no negative financial exposure, even if the matter is unsuccessful. Your only contribution will come out of your ‘winnings’.
Both current and former Priceline franchisees are eligible to participate.
Levitt Robinson Solicitors is the law firm who will act on the franchisees’ behalf and has run seven (7) class actions from start to finish. All seven have been successful, with five substantial settlements and two succeeding in Court after trial.
Please get in contact with Class PR for more information on (02) 8267 9499 or contact@classpr.com.au or visit the links below:
