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Florida orders outlets to close

Department of Health officials tell shops offering access to cheaper Canadian drugs to stop operating. Customers are outraged.

KRIS HUNDLEY and WILL VAN SANT
Published June 19, 2004

Just as Congress appears poised to relax restrictions on the importation of prescription drugs from Canada, Florida is cracking down.

Friday, the Department of Health issued cease-and-desist notices to a dozen storefronts statewide that have been processing customers' prescriptions for Canadian drugs. Among those receiving the notices were Discount Canadian Meds Direct in Spring Hill and Discount Medicine of Canada in Sun City Center.

"I wasn't really surprised because I know the Florida Board of Pharmacy wants us to go away," said Peggy Emhardt, owner of the Spring Hill store, referring to a longstanding battle between operations such as hers and traditional drugstores. "But my customers are furious. These people need cheap drugs."

State officials say the storefront operations, which have proliferated over the past two years to help people save on Canadian drugs, are operating illegally as pharmacies.

"Individuals who fraudulently practice any type of health care without a valid Florida license commit a crime that puts the health of our citizens and visitors at risk," said Secretary Dr. John O. Agwunobi. "Advertising as a licensed health care provider without a valid license is an offense. DOH will continue to expose businesses that fraudulently represent themselves in Florida."

The cease-and-desist orders say businesses that act as unlicensed pharmacies may be guilty of a third degree felony, punishable by imprisonment for up to five years and/or a fine of up to $5,000. Violating one part of the statute, which prohibits individuals from saying they can provide licensed health care services, carries a minimum mandatory one year in jail, the orders say.

Businesses that received the state's orders have maintained they are not pharmacies because they do not store or receive prescription drugs. They say they simply help customers by forwarding their doctors' prescriptions to Canadian wholesalers. Customers pay the Canadian company for the drugs and their prescriptions are mailed directly to their homes. The storefront is paid a referral fee, typically $5 per person, from the Canadian supplier.

Though a spokeswoman for the Department of Health declined to speculate on continuing investigations, several of those affected by the orders Friday said they think more cease-and-desist orders are coming.

Melinda Liddy, owner of Discount Medicine of Canada in Lakeland, who received her order to close on Friday morning, said she has heard that up to 50 businesses might receive the notices.

Meanwhile, she intends to fight the order.

"I'm not sure if this is a scare tactic or if this is something we have to comply with, because the order is open-ended," Liddy said. "We've been advised to dispute the order because it's based on assumptions and misinformation. Our doors will be open on Monday."

The state's action against Canadian drug imports comes as pressure is building in Congress to ease restrictions on such traffic. This week the powerful AARP put its support behind a Senate bill that would allow importation of Canadian drugs by individuals, pharmacies and wholesalers. And a recent report by the General Accounting Office found that in some instances Canadian pharmacies had stricter standards than those in the United States.

Emhardt of Spring Hill, who has built up a clientele of about 3,800 customers after 18 months in business, said she intends to tell her customers to call their state and congressional representatives. Based on the response of the few customers who heard of her situation Friday, she expects to ignite a firestorm of complaints.

She said even the new Medicare drug discount card can't match the savings her customers get by ordering from Canada.

"I have always said I would pack up my dolls and go home if they could come up with a better prescription drug program," she said. "But a lot of my customers have done price comparisons and they say they're still saving 30 to 80 percent through me."

Other businesses receiving the cease-and-desist orders Friday were in West Palm Beach, Sebring, West Melbourne, Oviedo, Bonita Springs, Port Orange, Altamonte Springs, Punta Gorda and Ormond Beach.

- Will Van Sant can be reached at vansant@sptimes.com or 352 754-6127. Kris Hundley can be reached at hundley@sptimes.com or (727) 892-2996.

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