A Nelson pharmacy and its directors have been accused of price fixing by the Commerce Commission.
The commission has filed civil proceedings against Prices Pharmacy 2011 Limited and its directors in the Nelson High Court.
The commission alleges that Prices Pharmacy 2011 and its directors, Stuart Hebberd and Jason Wright, facilitated a price-fixing agreement with competing Nelson pharmacies.
It's alleged by the commission that the conduct arose from a Nelson region pharmacy owners meeting in April 2016.
The agreement allegedly resulted in the dispensing charge consumers paid for fully-funded prescription items increasing from $5 to $6 in May 2016.
The commission also warned nine other companies whose pharmacies were represented at the alleged meeting in April 2016.
The 10 pharmacies that are operated by the nine companies warned were Savine Holdings (Bay Pharmacy, Motueka), Tasman Pharmacies (Greenwood Street Pharmacy, Motueka), Tasman Pharmacies (Unichem 162 High Street Pharmacy, Motueka), Queen Street Pharmacy (Queen Street Pharmacy, Richmond), Wakefield Pharmacy 2012 (Wakefield Pharmacy), Richmond Mall Pharmacy 2001 (Unichem Richmond Mall Pharmacy), Nelson City Pharmacy (Life Pharmacy, Nelson City), McGlashen Pharmacy (McGlashen Pharmacy, Richmond), Fry's Pharmacy (Fry's Pharmacy, Richmond), Mapua Pharmacy (Mapua Pharmacy).
The Court can impose a maximum $500,000 penalty for an individual and/or prohibit them from being a company director or managing a company. Body corporates can be fined more than $10 million.
Prices Pharmacy 2011 did not comment when contacted by the Herald.