Antitrust Law Daily Wrap Up, ANTITRUST NEWS: FTC recommends tactics to make pet medication industry more competitive, (May 28, 2015)

The FTC issued a report containing recommendations for ways to make the fast-growing pet medications market even more competitive in the face of increased competition from non-traditional sellers and marketplaces.

In October 2012, the FTC held a workshop on pet medications to examine the ways pet medications are distributed to consumers, and how these practices affect consumer choice and price competition. The workshop was attended by pet medication manufacturers and distributors, veterinarians, non-veterinary retailers, pharmacists, and consumer advocates. 62 percent of American households own a pet, and pet owners spend nearly $7 billion annually on pet medications. Overall spending has doubled over the last 12 years, and that a significant portion of that spending is devoted to prescription and over-the-counter medications.

While most consumers still get over-the-counter and prescription medications from their veterinarians, the number of options for consumers has increased. Big-box retail stores, supermarkets, and chain retail pharmacies now pose significant competition to veterinarians, as do online pharmacies that often sell medications at discounted prices.

According to the report, the pet medications industry could become more competitive if:

• consumers had greater access to “portable” prescriptions – or prescriptions that can be filled by someone other than their veterinarian;

• non-veterinary retailers had greater access to supplies of pet medications, which are currently restricted by exclusive distribution and exclusive dealing arrangements put in place by manufacturers of pet medications; and

• consumers had more low-priced generic animal drug options to choose from.

In addition to the public workshop, the FTC received and reviewed more than 700 written public comments.

News: Antitrust FederalTradeCommissionNews