(WWJ) Three pharmacies in Michigan, including one in Metro Detroit, have been put on notice by the state attorney general after shoppers reported price gouging for at-home COVID-19 tests.
Michigan Attorney General Dana Nessel announced Monday she has issued a Notice of Intended Action (NIA) to pharmacies in Madison Heights, Holland and Birch Run about COVID test kits being sold for far more than they should.
The concern, the AG said, arose from consumer complaints received against Value Center Pharmacy II in Madison Heights and Skip’s Pharmacy in Holland.
These pharmacies attempted to justify the prices they were charging for the kits by providing invoices showing how much they had paid to buy them from the third company, Birch Run Drugs.
“As detailed below, this Office has evidence Value Center Pharmacy was charging $50 per kit for the iHealth kit in December 2021, and that Skip’s Pharmacy was charging $80 per kit for that same product in early January 2022. We have compared these prices with both those being offered online as well as those being charged by other Michigan pharmacies. The information we have gathered provides probable cause to believe Value Center Pharmacy and Skip’s Pharmacy were charging prices to consumers for the iHealth kit grossly in excess of the price at which this kit was being sold by other retailers,” the NIA states.
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According to the AG, when purchased online from the manufacturer, the iHealth COVID-19 Antigen Rapid Test currently retails for $17.98 for a package containing two tests and was selling for as high as $19.98 over the past month. The NIA explains that it is not surprising that the kits may cost more when sold at brick-and-mortar store locations that have overhead tied to making the product immediately available but goes on to explain the prices being charged by Skip’s Pharmacy and Value Center appear to have been made artificially high.
In addition to owning those two pharmacies, an AG investigation found that the resident agent, Murali Ginjupalli, has a connection with Birch Run Drugs.
Nessel has given these pharmacies until Feb. 13 to respond to a request to work with her department to resolve this problem.
“Our attempts to look into consumer complaints have been met with unnecessary roadblocks thus far, so it is my hope this can be resolved without needing to take additional action against these pharmacies,” Nessel said. “We will not stand for businesses exploiting this current wave of COVID-19 cases for monetary gain. If you believe the prices for at-home test kits or any other COVID-related item are higher than they should be, please contact our consumer protection team. We remain committed to addressing instances of price gouging.”
The public can file complaints about price gouging, for COVD tests or anything else in Michigan, at this link.
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