Weighing up the insurance risks

2 July 2024

From 1 October 2024, community pharmacies in Australia will have the option to sell nicotine-containing vapes to adults without a doctor’s prescription. These regulatory changes bring significant risks that pharmacies must carefully consider.

The evolving regulatory landscape and emerging health findings highlight the potential liabilities associated with selling vapes. Pharmacists have a professional duty of care to dispense approved medications for established therapeutic benefits. Failing to navigate a situation where they are required to dispense products known to cause harm could lead to legal challenges.

A primary concern is the absence of Therapeutic Goods Administration (TGA) approval for any vaping product based on safety, efficacy, or performance. Supplying vape products without reliable evidence supporting their use for smoking cessation and nicotine dependence exposes pharmacists to the risk of being deemed negligent in their duty of care. This risk is compounded by the lack of approved guidelines for training, accreditation, and dispensing procedures.

Chief Executive Officer of Guild Goup and Guild Insurance warned that, “we strongly advise pharmacies to carefully evaluate the decision to sell vape products and, if proceeding to do so, put in place appropriate training, and dispensing procedures.”

Pharmacists who do not allocate sufficient time for unpaid consultations to assess patients' needs, document discussions, and obtain informed consent will face heightened legal risks. This includes the potential for courts to find them in breach of their professional duty if adverse outcomes arise from the use of vape products.

Product liability is another serious concern. Consumers may claim harm from using vape products, including allergic reactions or injuries from lithium battery malfunctions. Such claims could lead to significant financial and reputational damage for pharmacies.

“Understanding the potential premium increases and ensuring compliance with all relevant regulations are critical steps in mitigating risk,” Mr Cassidy continued.

Additionally, the ongoing ‘tobacco wars’ present another layer of risk. In Victoria, organised crime gangs battling for control of the illicit tobacco trade have targeted small businesses that refuse to sell illegal tobacco and vapes. For example, police statistics to March 2024 highlight a 23% increase in arson-related crime over 12 months. Meanwhile in Brisbane, police reported multiple break-and-enters that occurred at tobacconists across Brisbane, just a day after the vaping reforms were flagged.

Pharmacies choosing to stock vapes may face increased threats of extortion and intimidation, potentially leading to damage to their premises.

“Given these considerations, we strongly advise pharmacies to carefully evaluate the decision to sell vape products and, if proceeding to do so, put in place appropriate training, and dispensing procedures,” Mr Cassidy concluded.

Insurance companies have already warned that these risks are likely to result in higher premiums for pharmacies. As a result, it is strongly advised that pharmacies thoroughly evaluate the decision to sell vape products. Should they proceed, implementing comprehensive training and dispensing procedures is essential to mitigate these risks.

Media Contacts

The Guild

13 GUILD

Page last updated on: 02 July 2024