Online Sale of Drugs [UPSC Notes]

In Feb 2023, the Ministry of Health, GOI issued show cause notice to some e-pharmacies involved in the online sale of drugs for operating without a license. The E-pharmacy boomed during the covid-19 pandemic. In this article, you can read about e-pharmacies, issues with them and their regulation for the IAS exam.

E-Pharmacies [Issues]

Various trader organizations complain that these e-pharmacies are operating in violation of the drugs and pharmacies act.

• According to the Drugs and Cosmetics Act, a license is required from the particular state licensing authority for storing, selling, distributing and exhibiting drugs.
• But these e-pharmacies don’t possess licenses but exhibit and store drugs for online sale which is in violation of the drugs and cosmetics act.
• In December 2022, the Delhi High Court banned the sale of online medicines without a license.
• Since the sale of medicines has important implications for public health and safety, allowing an unlicensed operator to sell online medicines poses problems for public safety.
• Online pharmacies also offer huge discounts to capture the market which makes it difficult for brick-and-mortar traders to compete with E-Pharmacies.
• The growth of online medicine sales in single digits implies that consumers still prefer brick-and-mortar stores to buy medicine. So E-pharmacies are shifting to hybrid mode to sustain in the business, which will require stiff regulation by the government.

Way Forward:

• In the future, demand for online delivery of drugs is likely to grow and outright banning is not a viable option.
• Outright banning will push E-pharmacies to operate underground and the appropriate solution will be to regulate the sector.
• Regulation can be done through notification of E-pharmacy rules and multiple court orders also called for regulating the sector.

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