Gray Market Pet Meds: How to Ensure Your Pet’s Medications Are Authentic

This pet health content was written by a veterinarian, Dr. Debora Lichtenberg, VMD. It was last reviewed on August 29, 2024

If you have questions or concerns, call your vet, who is best equipped to ensure the health and well-being of your pet. This article is for informational purposes only and is not a substitute for professional medical advice, diagnosis, or treatment. See additional information.

Gray Market Pet Meds: A Surprising Offer

Several years ago, I received an envelope at my home, boldly stamped with “CONFIDENTIAL.” Inside was a letter from a company involved in veterinary exports, offering “top dollar” for diverted veterinary drugs.

• This company was seeking veterinarians, like me, to purchase drugs on its behalf, allowing it to bypass legitimate channels.
• The company couldn’t obtain the drugs legally and was enticing veterinarians to make a quick profit by participating in this gray market pet meds scheme.

What caught my attention was the return address on the envelope. It matched one of the largest and most reputable online veterinary pharmacies in America.

What was going on here?

The Ethics and Risks of Gray Market Pet Meds

I frequently receive letters asking me to buy drugs and divert them—an all-too-common occurrence among veterinarians.

• These requests are repugnant to me because they encourage unethical behavior.
• The companies behind these letters aim to purchase large quantities of inventory without regard for how the drugs have been handled or the relationship with the client.

This practice is known as gray market diversion and is a significant issue in the pet medication industry. It’s a big business—really big, worth billions.

• Certain pet medications are intended to be sold exclusively as prescriptions by veterinarians.
• We purchase these medications directly from pharmaceutical companies and then prescribe them to you.

However, when these medications are sold outside the veterinary channel—such as in big-box stores or online—they become part of the gray market, handled by unauthorized dealers. For instance, when you find Heartgard online, it’s likely a diverted product, caught in a very gray zone of integrity.

So why did this particular letter marked “confidential” bother me so much?

• If the identical addresses indicated that this was indeed the same company, then a highly regarded, accredited online pharmacy was engaging in shady practices, attempting to involve vets and their staff in diverting products.

Simply put—if this pharmacy were truly reputable, why couldn’t it obtain its own drugs?

The Role of Product Aggregators in Gray Market Pet Meds

People who are in business solely to procure pet medications through gray channels are known as product aggregators.

• These aggregators reach out to veterinary offices, offering money in exchange for vets purchasing and diverting products to them.
• A veterinarian acting unethically might buy large quantities of products and then resell them to unauthorized online or big-box sellers.

The unethical use of a veterinary license for this purpose results in a fee or kickback for the vet.

• Why is this practice unethical? Vets are supposed to purchase medications only for prescribing them to their patients, based on a legitimate veterinary-client-patient relationship.

While unethical veterinarians contribute to the problem, the gray market is so vast that diverted products often find their way into online pharmacies and retail stores through other means.

• Veterinary distributors are supposed to sell only to veterinarians, but diversion has still occurred.
• Manufacturers like Merial and Bayer (makers of Frontline and Advantage) have been accused of diverting their own products.
• International and counterfeit products also make their way into the gray market.

Product aggregators will source their products from any available channel.

Who would have thought that meat-flavored tablets in appealing packaging, complete with images of swimming dogs and playful puppies, would be treated like liquid gold in the contraband world?

I easily found this revealing statement in the SEC filings of one of the biggest online pharmacies:

“We currently purchase a portion of our prescription and non-prescription…”

Here is the actual excerpt, lifted straight from the report:

Why Gray Market Pet Meds Are a Serious Concern

And what’s the big deal, exactly? Why should you care about gray market pet meds?

• Safety and Integrity Risks: Whenever a product is diverted, its safety and integrity can be compromised. We’re talking about your pet’s health and safety here.

Even if you have a legitimate prescription from your vet, if you go online to fill that prescription, you might unknowingly purchase a diverted product. Consider these critical questions:

• How did the pharmacy get the product?
• Who bought and sold the product?
• How long did it sit in someone’s garage at subzero temperatures?
• Or did it boil for 1–2 months in a Florida warehouse?
• Why couldn’t that pharmacy obtain the product legitimately?

If you encounter a problem with a product like Frontline, does the online pharmacy (or Amazon, or Costco) offer the manufacturer’s guarantee? According to the manufacturer, the answer is no.

While Frontline is not a prescription medication, the diversion of prescription drugs is an even more serious ethical issue.

I didn’t realize just how shaky the online pharmacy business for prescription medicine could be.

Diversion: Not What the Doctor (Or Your Hairdresser) Ordered

Nine out of 10 consumers don’t know what diversion is, but they’ve probably bought diverted products unknowingly.

• I unknowingly purchased a diverted product recently: Redken hair conditioner.
• While shopping for toothpaste at my local supermarket, I noticed some upscale hair products and decided to buy one. “Oh,” I thought, “Redken’s such a big name now, it’s everywhere.”

But it’s not supposed to be. The hair care line was diverted.

• The company prefers that you purchase its products directly from your hairdresser. Why? Because Redken wants you to use the right product in the right way. Hair care professionals sign an agreement with Redken that they will not divert.

Did I get the conditioner cheaper at the supermarket? No way!

• Was it an older product? Yes.
• A discontinued product? Yup.
• And, according to my hairdresser—who is also my client—not even the right product for my hair. (Maybe that’s why I’m in such a bad mood. My hair looks like crap.)

As my hairdresser was fixing my fright-head and I told her about the letter from the online pharmacy’s “exporter,” she confided, “I buy my Frontline at Dave’s.” (Dave’s is our local pet store chain.)

“You bought diverted Frontline,” I said, “and I bought diverted Redken.”

• Did either of us get a great price? Nope.
• Did we know that the product was handled properly and that we bought the right stuff? Nope.
• Did we know we were buying diverted products? Nope.

Two intelligent consumers? We’d thought so. Nope.

The Legality of Gray Market Pet Meds

While this practice may be unethical or unscrupulous, and while pharmaceutical companies don’t approve or verify their products when found on the gray market, the gray market is not illegal.

• In my opinion, the gray market will eventually transform into a clear-cut, black-and-white market where products are not diverted but safely appear online and in retailers.
• Pet medications will be supplied directly by manufacturers, with quality controls in place, properly stored, and delivered to these outlets, under the supervision of regulating and enforcement agencies.

However, this is not happening yet.

The Legality of Gray Market Pet Meds

While this practice may be unethical or unscrupulous, and while pharmaceutical companies don’t approve or verify their products when found on the gray market, the gray market is not illegal.

• In my opinion, the gray market will eventually transform into a clear-cut, black-and-white market where products are not diverted but safely appear online and in retailers.
• Pet medications will be supplied directly by manufacturers, with quality controls in place, properly stored, and delivered to these outlets, under the supervision of regulating and enforcement agencies.

However, this is not happening yet.

Product Quality Concerns with Gray Market Pet Meds

If you buy from a reputable online pharmacy, you will probably get an authentic product.

However, the manufacturer will not ensure the product is authentic and will not guarantee its safety or efficacy. At least, that’s what major pharmaceutical companies profess.

Zoetis’s policy on diversion is clear on its website:

“Zoetis does not sell prescription medications for dogs and cats to retail outlets, pet supply stores, internet sites or any other distribution facility where a direct veterinary-client-patient relationship does not exist — nor do we support in any way secondary supply to these businesses.”

Risks Associated with Diverted Products

These risks include:

• Product Handling: Has the product been handled properly since it was picked up from the diverter, or was it stored in a boiling-hot warehouse in Florida, Phoenix, or China?
• Product Safety: Has the product been tampered with or have expiration dates been altered? You are dealing with shady characters who prioritize profit over pet care. In this gray business, we are definitely dealing with shady practices.
• Product Guarantee: Pharmaceutical manufacturers claim they will not stand behind a product not obtained through a veterinarian.

To this last point, Zoetis states:

“Since we cannot be certain how our products reach unauthorized aggregators, we cannot ensure product authenticity from these unauthorized aggregators nor can we ensure that proper storage and handling occurred. Therefore we reserve the right to refuse to honor associated product guarantees for products purchased from unauthorized distributors.”

TV Commercials Representing Gray Market Pet Meds

Those well-known companies with splashy websites or advertising on TV are not getting their products through veterinary channels.

As Zoetis states:

“Many of these unauthorized dealers advertise products on their website or on television commercials that they do not have in stock and cannot readily obtain. Moreover, even in situations where such advertisements show a picture of the product, it does not mean they have the product in stock…. In all cases these organizations are also using pictures of Zoetis products without our prior knowledge or consent.”

Notice that even a big company like Zoetis is not mentioning any names. That’s because the gray market online companies and big-box retailers are huge and have a lot of lawyers working for them.

When I wrote about this topic in the past and mentioned a company by name that was under investigation, I received a threatening letter from its corporate attorneys stating that they would go after me personally.

Why Buy Diverted Products on the Gray Market?

I would venture a guess that most of you who buy online or in big retail stores are doing it to save money first and for convenience second.

• I get it—your life arrives in a box, and you think you’re getting a bargain in that box. Well, think again.
• See if your vet will match your online price for your important pet medications. You might be happily surprised.

Be honest with yourself about your buying practices. Did you buy anything in addition to your pet medicine when you were on an online website or in a big-box store? Did you ultimately spend more money, not less?

A Personal Perspective on Gray Market Pet Meds

I’m over the gray market thing. I write a prescription for anyone who wants one, give them the best guidance I can about drug safety, and try to be fair in drug pricing.

• When the writing on the wall was clear 20 years ago—that the pet medication market was becoming competitive—I was proactive in my own little hospital when internet pharmacies were still in their infancy.

I priced my prescription medications competitively with the internet and informed my treasured clients about the potential risks and unethical practices associated with gray market pet meds. This approach worked well.

• Additionally, I developed a hospital model that does not rely on selling medications to thrive. I’m a doctor, not a retailer. If my clients trust me and my recommendations, and see that they are not being financially abused, they are likely to buy their medicine from me.

If I can’t meet a price—typically for a rarely used or very expensive medication—and they can get it cheaper elsewhere, I write a prescription and try to direct them to a reliable source.

I want to help my clients get the right medication for their pets at a good price.

How the Gray Market Affects You

When you see the feathers on your veterinarian ruffle at the very mention of gray market pet meds, consider these facts:

• Compliance Issues: Compliance goes down when clients shop for their own medications. For example, people often don’t buy enough heartworm preventive for a year when shopping on their own, or they don’t buy it at all.
• Incorrect Purchases: People buy the wrong products. You might plan to purchase the recommended flea and tick medication at Target, but when you see a cheaper product, you buy that instead. The quality, safety, and efficacy of these products can be vastly different. Left to your own devices, you might be wasting your money entirely on a useless, possibly toxic, product or one that doesn’t meet the standards your veterinarian outlined for you.
• Misinformation Risks: Human pharmacists and online pharmacies can provide wrong or misleading information. This is a significant problem because no veterinarian-client-patient relationship exists when you buy from a third party. You cannot always trust the information you get from a non-veterinarian.

Many products are diverted, from athletic wear and luxury goods to electronics and bike racks. But two commodities stand out: pet medications and hair products.

The Redken hair products on your box-store shelves are as gray market as the heartworm preventives in the next aisle.

This fact still blows my mind. While people might take their hair very seriously, expired or bogus shampoo is simply not as worrisome as ineffective heartworm preventive. I don’t know what it says about our culture that the quality of our pets’ medications is treated with the same cost-cutting mindset as hair conditioner.

It’s time to wash away this gray market—our pets need safe medications, consumers need fair pricing, and we need to get some integrity back into this marketplace.

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