The applicants, who own and operate pharmacies in Ontario, challenged the validity of provincial regulations that prohibited 'private label' generic drugs from being designated as interchangeable or listed for public reimbursement.
The Divisional Court held that the regulations were ultra vires the Ontario Drug Benefit Act and the Drug Interchangeability and Dispensing Fee Act.
The Court found that the enabling statutes authorized the imposition of conditions, not absolute prohibitions, and that the ban on private label products was extraneous to the legislative purpose of controlling drug costs.
The regulations were declared invalid and of no force and effect.
