Cashback and Promotions in Pharmacies: What the Law Allows

TikJoy Editorial TeamJuly 18, 20265 min read

In Italy, a pharmacy cannot offer cashback, loyalty points or any prize scheme on medicines — and the ban comes from national law, not only from TikTok or Meta — while the very same rewards are fully legitimate on parapharmacy, dermocosmetics and services. That is the counterintuitive part of this topic: everyone worries about platform policies, but the binding constraint on pharmacy promotions is Italian pharmacy law itself. The reassuring part is that the compliant lane coincides exactly with the categories where pharmacies actually compete and make their margins. Here is what the law says, why it says it, and how to build a reward program that never crosses the line.

The rule that actually binds: the Bersani decree

The cornerstone is art. 5, comma 2 of the Bersani decree (D.L. 223/2006, converted into Law 248/2006), still in force, unchanged, as of mid-2026. It prohibits "concorsi, operazioni a premio e vendite sotto costo aventi ad oggetto farmaci" — contests, prize operations and below-cost sales involving medicines. The scope is total: it covers every category of medicine — prescription drugs (class A and C), SOP and OTC products bought without a prescription, and homeopathic medicines alike.

The reasoning is easy to respect once you see it: the law does not want medicine consumption to be steered by commercial incentives. You buy a medicine because you need it, not because it earns you points.

Discounts are allowed — selective rewards are not

Here is where many pharmacies get confused. A later provision (art. 5, comma 3, reinforced by art. 32 of D.L. 201/2011) did liberalize discounts on non-prescription medicines. But it attached two conditions: the discount must be clearly displayed, and it must apply to all buyers, equally.

That second condition is exactly what a reward program fails. A cashback paid only to customers who post a video, or a price cut reserved for cardholders, is by definition selective — so it falls outside the liberalized discount and back inside the prize-operation ban.

The institutional reading has been consistent for years — from the Ministry of Health's Circular 3/2006 to the pharmacists' professional orders and, most recently, UTIFAR's 2025 guidance: fidelity cards, points and prizes cannot apply to any medicine, while they are perfectly legitimate on parapharmacy and cosmetics.

One telling confirmation: in 2025 Italy's competition authority (AGCM) formally proposed changing the law to allow pharmacy loyalty schemes on medicines. You only propose to allow something that is currently forbidden. As of mid-2026 the proposal has not passed — worth monitoring, but today the ban stands.

The grey area: rewarding the video, not the purchase

There is one genuinely open question. What if a third-party platform rewards a customer for publishing a video — not for buying anything? Does a reward that never touches the transaction still count as a prize operation "involving medicines" when the video features one?

The honest answer is that this has no settled interpretation and needs local legal review before anyone relies on it. TikJoy's prudential answer is simpler: medicines never enter the reward loop at all — not as a purchase, not as the subject of a rewarded video — so the question never has to be answered.

Where TikTok and Meta come in

Once you are inside the legal lane, platform rules stack on top — and they follow the same logic. The moment there is any incentive, TikTok treats the video as branded content ("in exchange for payment or any other incentive"): the disclosure toggle becomes mandatory and the stricter Branded Content Policy applies. Hiding the incentive makes things worse, because undisclosed paid content is misleading advertising.

Two more principles are worth internalizing. Platform policies apply regardless of the licenses you hold — Meta's wording is explicit: "These prohibitions apply irrespective of the global or local licenses, registrations, or other approvals your business may hold." And what gets banned is promotion of a regulated product, not mere depiction: a shelf in the background is not the problem; making a medicine the star of an incentivized video is.

A quick look abroad

  • Germany: §7 of the HWG restricts gifts and benefits in medicine advertising; cash rewards are prohibited for price-bound Rx medicines, and OTC remains a grey area that calls for local counsel.
  • United States: rewards are allowed, but the FTC requires disclosing the paid relationship (#ad and equivalents).

The rule of thumb travels well: cosmetics and parapharmacy are the safe lane everywhere.

What a pharmacy can reward

Plenty, as it happens — and precisely the high-margin part of the business:

  • purchases of parapharmacy and dermocosmetics, with cashback or points;
  • services offered by the pharmacy;
  • social actions — publishing a video about the pharmacy's cosmetics range;
  • for physical pharmacies whose POS cannot separate categories, rewards can be engagement-based rather than receipt-based — you reward the video, on allowed categories, not the till receipt.

How TikJoy builds these rules into the product

None of the above should depend on anyone's memory. TikJoy's pharmacy vertical profile builds the rules into the product:

  • category-scoped cashback: medicines are excluded from the reward loop automatically, with no manual list to maintain;
  • every incentivized video ships with the branded-content disclosure already switched on;
  • the catalog and the WhatsApp concierge are filtered to cosmetics and parapharmacy, so no medicine can become the subject of a rewarded post;
  • for physical pharmacies, rewards can run engagement-based, so a mixed till receipt never contaminates the program;
  • TikJoy monitors platform policy signals and tightens your setup at the first warning — protecting the account, not just a single post.

Because TikJoy publishes through approved APIs, the platform guardrails are applied by the product itself — while the genuinely legal questions stay where they belong, with your advisor.

The bottom line: it is Italian law, not the platforms, that draws the pharmacy cashback line — and it draws it exactly where your best margins live. Want to see the rules for your own market and category mix? Use the interactive guide on our compliance page.

Frequently asked questions

Is cashback on medicines legal in Italy?

No. Art. 5 of the Bersani decree (D.L. 223/2006, converted into Law 248/2006) bans contests, prize operations and below-cost sales on all medicines — prescription, OTC/SOP and homeopathic alike. Cashback, points and fidelity cards are legitimate only on parapharmacy, cosmetics and services.

Can an Italian pharmacy discount OTC medicines?

Yes. Discounts on non-prescription medicines were liberalized (art. 5, comma 3 of the Bersani decree; art. 32 of D.L. 201/2011), but only if the discount is clearly displayed and applied to all buyers. A selective reward — only for cardholders or customers who post a video — fails that condition.

Can a third-party platform reward customers for posting videos about a pharmacy?

Yes, on allowed categories. Whether a reward for publishing a video that features a medicine falls under Italy's medicine-prize ban is an open question that needs local legal review; the prudent approach — TikJoy's default — is to keep medicines out of the reward loop entirely, so the question never arises.

Do TikTok's rules or national law decide what a pharmacy can promote?

Both apply, and the stricter rule wins. Any incentivized video is branded content on TikTok and needs the disclosure toggle, but for pharmacy cashback the binding constraint is national law: Italy bans rewards on medicines regardless of platform policy. Parapharmacy and cosmetics are the safe lane.

TikJoy Editorial Team TikJoy's editorial team writes about performance UGC, WhatsApp marketing and creator-driven growth, based on what we build and observe with brands using the platform.

Ready to turn customers into creators?

Try TikJoy for free — integrate TikTok and WhatsApp in seconds and reward your community with instant JoyBack payouts (no purchase required).