HOLLAND, Michigan — Attorney General Dana Nessel announced Monday that four Michigan pharmacies accused of price gouging have entered compliance agreements, including Skip's Pharmacy in Holland.
The announcement comes after a Notice of Intended Action (NIA) was issued to the pharmacies in February.
The Attorney General's Office had received complaints that the pharmacy was selling overpriced at-home COVID-19 test kits. The kits were going for $80 per kit, which Nessel said was far more than their market value. The NIA also claimed that the kits were selling at higher rates than other pharmacies in the area.
During the investigation, Skip's Pharmacy and Value Center Pharmacy II in Madison Heights were connected to Birch Run Drugs in Birch Run and Maplewood Pharmacy in Bay City.
RELATED: AG Nessel warns legal action against Holland pharmacy accused of selling $80 COVID test kits
After the NIA was issued, the pharmacies agreed to price the kits at $12.99 per kit, except where a customer’s insurance plan reimburses at a pre-set amount.
In addition, the pharmacies will pay $100 to two customers who had complained, and an additional $1,000 to the Attorney General's Office as restitution to customers who bought the overpriced kits.
“My Consumer Protection Team continues to secure positive results for Michigan consumers,” Nessel said in a release. “Let it be clearly understood that I will hold accountable businesses that exploit the ongoing pandemic for monetary gain.”
Pharmacy owner Murali Ginjupalli shared the following statement in connection with the matter:
"We have worked cooperatively with the Michigan Attorney General's office to resolve this matter, and we are pleased to have reached a voluntary agreement. It's important to note that our pharmacies provided COVID-19 tests at a critical time during the height of the omicron surge. Tests were in short supply at this point, and our pricing reflected that – much in the same way the current surge in gas prices reflects the uncertainty over distribution and availability of fuel. Tests we procured and then sold enabled life to continue, allowing people to go to work, children to attend school and families to gather together – all safely because of available testing.
It's also important to note the AG did not levy any fines in this matter. We are in process of reimbursing two consumers who complained. In the spirit of continued cooperation, we have agreed to limit the prices of test we are selling directly to consumers – although the price of tests has been eroded because of government programs that have finally caught up to demand."
Those interested in seeking restitution must file a complaint with the department within 60 days. The form can be found here. The complainants must be able to prove that they overpaid for an iHealth test kit between Dec. 1, 2021, and Feb. 28, 2022 from one of the four pharmacies.
For more information on the Assurance of Voluntary Compliance agreement, click here.
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