Inside: If you’re not careful, your marketing could get you into legal trouble. Learn how to market your pharmacy safely.
Did you know, according to law, marketing doesn’t count as free speech? (And actually, it’s pretty expensive…)
That means every marketing message you create falls under the strict scrutiny of the federal government.
Some marketing messages can result in fines. Others, in lawsuits.
But it’s not all bad news.
While this isn’t an exhaustive list, avoid these five marketing mistakes to keep your pharmacy marketing legal-proof.
5 Marketing Mistakes That Can Get Your Pharmacy Into Legal Trouble
1. Using copyrighted material
“Good artists steal” is a mantra of advertisers and artists everywhere. That statement assumes that someone else doesn’t own what you’re borrowing.
Maybe you discovered a fantastic advertisement online and want to borrow the tagline for your marketing campaign. Or, perhaps you created your own idea and don’t realize someone else has already trademarked it.
Who would care if your small community pharmacy borrows a good idea?
Some companies hire employees dedicated to defending their trademarks. They pore over the internet in search of innocent thieves, especially small businesses. They threaten to sue. And they know small businesses don’t have the resources to invest in expensive litigation.
What to do: Visit the U.S. Patent and Trademark Office website and search for trademarks before you advertise your great idea.
RELATED: Are You Making These Pharmacy Marketing Mistakes?
2. Using false or misleading advertising
Advertising is deemed false or misleading information not only when it makes false or misleading claims but also when it leaves out important information.
For example, if you advertise an immunization that comes with risks or side effects, you must alert your patients to them.
The rules for false information vary depending on the industry. The Federal Trade Commission (FTC), which enforces the regulations, is stricter with health-related advertising.
Make sure you communicate any potential risks to patients when you advertise.
And, if you make any claims, such as “#1 physician recommended,” make sure you have the data to support it.
What to do: Review the FTC’s definitions of false advertising.
3. Sending SPAM email
You send your patients helpful marketing emails full of valuable content. But one day you discover that filters or patients have been marking your emails as spam.
This scenario happens a lot. Of course, you won’t intentionally send your patients spam. But if you’re not careful, your marketing emails can get labeled as spam. And it could cost you thousands of dollars for a CAN-SPAM violation.
What to do: Use the following spam email guidelines from the FTC to avoid a violation.
Spam email guidelines to know:
- Don’t use false or misleading header information
- Don’t use deceptive subject lines
- Identify the message as an advertisement
- Tell recipients your valid physical postal address
- Tell recipients how to opt out of receiving future email from you
- Honor opt-out requests within 10 business days
- Check what others are doing on your behalf. (Even if you hire another company to handle your email marketing, you’re still legally responsible.)
4. Defaming a person or company
If you harm another business’s reputation with unproven information, it can sue you for defamation.
For example, you can’t tell prospective patients that Walgreen’s customers have worse health outcomes. Even if you believe it’s true.
If you have proven statistics that support your statement, you can legally market the information. But tread carefully. Defamation lawsuits can cost you a lot.
Make a rule to never attack competitors. You’ll avoid potential legal issues and you can focus on more effective, positive marketing.
5. Rewarding patients for transferring prescriptions
Some states prohibit pharmacies from offering patients any form of incentive to transfer their prescriptions.
For example, in Tennessee, pharmacies that offer rewards points, gift cards or cash to patients for transferring their prescription face a $1,000 civil penalty or even revoked licensure.
Certain financial incentives for transferring prescriptions are prohibited for all Medicare and Medicaid beneficiaries no matter which state you operate in. The law forbids any “remuneration” above $15, such as waivers of copayments and deductible amounts and transfers of items or services for other than fair market value.
What to do: Protect your pharmacy by contacting your state board of pharmacy. Ask about the specific restrictions in your state.
Make your pharmacy legal-proof by avoiding these five marketing mistakes.
A Member-Owned Company Serving Independent Pharmacies
PBA Health is dedicated to helping independent pharmacies reach their full potential on the buy-side of their business. Founded and owned by pharmacists, PBA Health serves independent pharmacies with group purchasing services, wholesaler contract negotiations, proprietary purchasing tools, and more.
An HDA member, PBA Health operates its own NABP-accredited secondary wholesaler with more than 6,000 SKUs, including brands, generics, narcotics CII-CV, cold-storage products, and over-the-counter (OTC) products — offering the lowest prices in the secondary market.
