Hatch says no need to charge more than $4 in discounters' generic drug programs

Attorney General Mike Hatch says there's nothing necessarily wrong with companies selling prescription drugs--or anything else for that matter--for less than they paid for them. He says it's perfectly legal for a business to have a sale, or even consistently sell products below cost to draw in customers. Hatch says what's illegal is when businesses intentionally lose money in an effort to force their competitors out of business. But Hatch says Minnesota law sets a pretty high standard.

"If this state were to sue a company because it's charging $4 for a prescription, and they were able to show they're making a profit on other products, they would win their case," says Hatch. "If they could show that they were not doing it for the purposes of driving out competition, but rather doing it as a promotional or humanitarian effort, they will win their case. So, I think they are wrong to say that this statute prohibits them from charging $4 per prescription."

Violations of the law are a misdemeanor, typically the province of a city attorney, and in some cases a county attorney.

But Hatch is the state's chief legal officer and also has jurisdiction.

Target did not return calls seeking a response to Hatch's reading of the law. Wal-Mart spokesman Kevin Gardner didn't want to be recorded for broadcast. But he says Wal-Mart stands by its own analysis of the requirements in Minnesota, Wisconsin and other states with similar laws. In those states, Wal-Mart will continue to charge $9 instead of $4 for about 17 percent of the drugs on its list.

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