Archive · 21 Aug 2026
Delhi Warns Pharmacies Over Misleading Medicine Discount Advertisements
Delhi officials told pharmacies not to use discount signs that could trick customers.
Some stores advertised discounts of up to 60%, 70% or 80% on medicines.
Stores may still sell medicines for less than the printed maximum price.
However, the discount they advertise must really be available.
Pharmacies must be able to prove the discount using bills and purchase records.
They must also buy medicines from licensed suppliers.
Officials are especially concerned about very large discounts that may not be genuine.
The warning follows a Kerala High Court decision supporting action against unclear or misleading pharmacy advertisements.
The Delhi Drugs Control Department warned pharmacies against unrealistic or misleading claims of discounts up to 60%, 70% or 80% on medicines.
Selling medicines below the Maximum Retail Price is permitted, but advertised discounts must be genuine, transparent and available to customers.
Pharmacies must be able to verify discounts through sale bills and purchase records and source medicines from licensed distributors or wholesalers.
The advisory warned that unusually steep discounts, including prices below procurement cost, could raise questions about medicines’ authenticity and sourcing.
The move cites a June 19, 2026 Kerala High Court ruling that upheld action against misleading discount boards while allowing genuine sales below MRP.
- Who
- The Delhi Drugs Control Department, Delhi pharmacies and medical stores, chemist associations, and the Kerala High Court.
- What
- Delhi warned pharmacies not to advertise unrealistic, exaggerated, false, misleading or vague medicine discounts.
- When
- The Delhi advisory was reported in the articles; it cites a June 19, 2026 Kerala High Court judgment and a September 4, 2024 Kerala circular.
- Where
- Delhi, with the cited legal ruling arising in Kerala.
- Why
- To promote transparency, protect consumers and prevent misleading commercial practices in medicine sales.
Pharmacy Operators
Regulators and Consumer-Protection Authorities
Selling below MRP
Pharmacy Operators
Pharmacy operators argued there was no legal prohibition on selling medicines below MRP or informing customers about available discounts.
Regulators and Consumer-Protection Authorities
Regulators agreed that genuine price reductions are allowed and said their objection concerns misleading or vague advertising, not discounts themselves.
Large discount advertisements
Pharmacy Operators
Retailers may use discount boards to communicate lower prices to customers and make medicines more affordable.
Regulators and Consumer-Protection Authorities
Authorities said claims such as discounts of up to 80% may attract customers who later receive a much smaller reduction or pay the MRP.
Regulatory conditions
Pharmacy Operators
Pharmacy operators challenged the regulatory action and its restrictions on discount boards.
Regulators and Consumer-Protection Authorities
The Kerala High Court upheld the licensing authority’s power to impose conditions preventing pharmacies from misleading the public.
- Discounts permitted
- Medicines may be sold below the Maximum Retail Price.
- Restricted conduct
- Pharmacies must not display or publicize unrealistic, exaggerated, false, misleading or vague discount claims.
- Examples flagged
- Promotional claims of up to 60%, 70% or 80% discounts.
- Verification
- Advertised discounts should be supported by sale bills and purchase records.
- Procurement
- Medicines must be obtained from genuine licensed distributors and wholesalers.
- Legal basis cited
- A June 19, 2026 Kerala High Court judgment upheld action against misleading pharmacy discount boards.
- Recipients
- Delhi chemist associations were asked to alert their members and promote compliance.