Regulatory And Legislative Measures To Check Online Pharmacies Trading In Banned Drugs In India

Online pharmacies are flourishing world over including India. The Indian market share of online pharmacies has been increasing thanks to the growing use of Internet in India. However, this has also created legal and medico legal problems as well.

We have no dedicated e-commerce laws and regulations in India. Further, we also do not have any dedicated e-health laws and regulations in India. In fact, e-health in India is facing legal roadblocks and in the absence of regulatory and legislative measures, online pharmacies are growing unregulated. In the present circumstances, the legal enablement of e-health in India is urgently required.

However, even more grave are the concerns originating out of the use of e-trading for medical and non medical drugs in India. E-trading of medical drugs in India must be undertaken only after complying with the laws of India. There are many cyber laws due diligence requirements in India that e-traders of medical drugs in India must comply. Similarly, foreign websites targeting India for this purpose must also comply with Indian law in order to do legitimate business in India.

There are many online pharmacies that are trading in banned drugs in India as well. Realising the potential dangers arising out of the same, the Indian government has recently constituted a high-level committee to suggest regulatory and legislative measures to check online pharmacies trading in banned drugs in India.

The committee has been set up under the Narcotics Control Bureau (NCB) of India to check such sale of banned drugs in India and to prevent black money and finances criminal activities through online transactions. The committee has been constituted as a part of the new drugs policy recently revealed by Finance Minister Pranab Mukherjee.

However, online pharmacies are by their very nature technology driven. So the approach of Finance Ministry must be techno legal in nature. Fortunately the committee has proposed to establish “cyber patrol units” to intercept syndicates and individuals indulging in such criminal activities over the Internet.

Another good aspect of the proposed legislative initiative is the proposal to route and inspect international mail (containing contraband couriers) while ensuring active cooperation and exchange of information with other enforcement agencies like CBI, DRI and ED, within the country.

Perry4Law and Perry4Law Techno Legal Base (PTLB) welcome this move of Finance Ministry and proposed committee and we wish all the best to them in this regard.

Electronic Trading Of Medical Drugs In India

Electronic trading or online shopping of commodities is a fast, efficacious and cost effective method of business and commerce. However, e-trading is not a free ride but is subject to well defined rules and regulations world wide. This is more so regarding pharmaceutical products that require an additional precaution while dealing in an online environment.

We have no dedicated e-commerce laws and regulations in India. However, the basic outline of the same has been laid down in the information technology act 2000 (IT Act 2000). The IT Act 2000 is also the sole cyber law of India that primarily deals with contraventions and offences pertaining to e-commerce and e-trading in India.

While we have basic level e-commerce legal framework in India yet e-health related legal framework is missing. For instance, e-health in India is facing legal roadblocks. Till now we do not have any dedicated e-health laws and regulations in India. In the present environment, the legal enablement of e-health in India is urgently required.

This is so because when technology is used for medical purposes, it gives rise to medico legal and techno legal issues. In United States, the Health Insurance Portability and Accountability Act of 1996 (HIPAA), Health Information Technology for Economic and Clinical Health Act (HITECH Act), etc are some of the laws that take care of medico legal and techno legal issues of e-health and telemedicine.

As far as India is concerned, we have no dedicated e-health and telemedicine laws in India. Even essential attributes of these laws like privacy protection, data protection, data security, cyber security, confidentiality maintenance, etc are not governed by much needed dedicated laws.

Ordinary commodities can be comfortably sold through e-commerce websites. However, health related commodities, especially prescribed medicines and drugs, are not easy to manage in an online environment. This is the reason why we have almost nil e-trading of prescribed drugs and medicines in India as on date.

E-trading of medical drugs in India must be undertaken only after complying with the laws of India. There are many cyber laws due diligence requirements in India that e-traders of medical drugs in India must comply. Similarly, foreign websites targeting India for this purpose must also comply with Indian law in order to do legitimate business in India.

Since the issue is of great public interest, Indian government must formulate a dedicated e-trading law for medical drugs in India so that online illegal sale of medical drugs to Indian residents can be curtailed. Presently, many foreign websites are openly offering sale of medicine drugs to Indian residents through e-mails and other digital channels. Such conduct of these foreign companies and websites must be regulated in India so that harm to public at large can be avoided.

Digital Communication Channels For Drugs And Healthcare Products In India

E-commerce in India is booming and pharmaceutical and health care industry is also eying upon the same for greater reach and more profits. However, legal enablement of e-health in India is still missing. In fact, e-health in India is facing legal roadblocks. Till now we do not have any dedicated e-health laws and regulations in India.

In such circumstances, online sales and purchase of prescribed drugs and medicines in India is a tricky issue that is full of legal landmines. In countries like United States there are laws like Health Insurance Portability and Accountability Act of 1996 (HIPAA), Health Information Technology for Economic and Clinical Health Act (HITECH Act), etc. However, in India we have no such laws to take care of e-health, telemedicine and similar issues.

Further, online shopping in India has many legal and cyber security issues to be resolved. For instance, essential legislations ensuring privacy protection, data protection, data security, cyber security, confidentiality maintenance, etc are missing in India. This makes online sales and purchases vulnerable to cyber crimes and financial frauds. This is the reason why cash on delivery is still the preferred mode of e-commerce payments in India.

Cyber law due diligence in India is another area that e-commerce and online drugs and healthcare products platforms must take care of. Cyber law due diligence for Indian companies is one of the most frequently litigated aspect in India. Lack of cyber law awareness and cyber due diligence awareness is the main reason that many websites and companies have found themselves in the net of Indian laws.

In order to remain profitable and competitive pharmaceutical companies are looking towards digital mediums to communicate with physicians and patients. For instance, recently pharmaceutical company GlaxoSmithKline (GSK) has indicated its intention to utilise digital communication channels for dealing with its drug and healthcare products.

With the growth of information and communication technology (ICT), physicians and patients are increasingly looking online for information on ailments and their treatments. However, techno legal and medico legal issues cannot be ignored otherwise legal actions can follow.