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.

Cash On Delivery May Harm E-Commerce In India

E-commerce players in India are trying every possible method to woo customers. Besides discounts, cash on delivery (COD) has been developed as a mechanism to enhance consumer’s and customer’s trust in the e-commerce business model.

Cash on delivery has an obvious advantage that consumers in India are more comfortable with the same. However, it has a major drawback as well .Cash on delivery results in delayed payments, higher rejection rates and longer turnaround.

Cash on delivery method was devised at a time when there was limited knowledge and little awareness about e-commerce in India. Similarly, sticking to cash on delivery was also required as there was not much broadband penetration, technological access and technology awareness among Indian masses.

Now things have changed and sticking to the old cash on delivery method may not be productive in the long run. Perry4Law and Perry4Law Techno Legal Base (PTLB) believe that in an ideal e-commerce model, cash on delivery percentage should not be more than 20% of the total e-commerce sales and revenues. If it is more than 20%, additional costs and unintended inefficiencies may creep in.

While public awareness about both e-commerce and technology use may have increased yet Indian e-commerce industry is suffering from a serious drawback. We have no dedicated e-commerce laws and regulations in India. E-commerce legal issues are still governed by the information technology act, 2000 (IT Act 2000) that is the cyber law of India. We need a dedicated e-commerce law in India to meet the growing techno legal challenges of e-commerce.

A sound legal framework is also required as future shift from cash on delivery to online payments would raise many techno legal issues that Indian e-commerce players have yet to face. A new e-commerce legal framework for India must be established as soon as possible.

E-commerce platforms can be greatly benefited if they have an internal or affiliated dispute resolution mechanism at place. For example, use of online dispute resolution (ODR) in India can be a good option at e-commerce platforms. In fact, use of ODR for e-commerce disputes resolution is the latest trend word over.

We at Perry4Law and PTLB are managing the exclusive techno legal e-courts centre and ODR centre of India where techno legal disputes of e-commerce platforms, corporate houses, individuals, international organisations, etc are resolved.

If you are an e-commerce platform that wishes to safeguard your techno legal interests, feel free to contact us in this regard with your proposal. We would take care of all your techno legal issues pertaining to e-commerce.

E-Commerce Laws In India

Technology has brought many important changes the way we deal in our day to day lives. Whether it is e-governance or e-commerce, individuals and companies are equally benefited due to use of technology.

Realising that cyberspace can bring many commercial benefits; both individuals and companies are ensuring that they have strong online presence. More and more brand promotion and protection in India are done these days in an online environment. Companies and individuals are also ensuring domain name protection in India so that their reputation and goodwill is not misappropriated by others.

We have no dedicated e-commerce laws in India. However, the information technology act 2000 (IT Act 2000), which is the sole cyber law of India, is regulating the e-commerce business and transactions in India. Internet intermediaries liability in India under the IT Act 2000 is very stringent. Cyber law due diligence in India is one aspect that all e-commerce site owners must frequently engage in.

Electronic commerce in India (E-commerce in India) has slowly and steadily entered the Indian market. Toady from tickets booking to purchasing of good and services, everything happens in an online environment.

Of course, where commercial transactions occur, disputes and differences are bound to occur. To prevent and resolve these disputes we need norms, regulations and laws that are acceptable to all the stakeholders.

The e-commerce law of India is primarily incorporated in the information technology act, 2000 (IT Act 2000) that takes cares of legal obligations of both sellers and buyers of good and services in cyberspace.

The IT Act 2000 prescribes rules and norms for online contract formulation. The traditional concepts of offer, acceptance etc, as applicable under the contractual laws, have also been covered by the IT Act 2000. The only difference is that they have been customised as per the requirements of cyberspace.

However, e-commerce transactions and contracts also attract certain additional legal liabilities that e-commerce players in India are not very much aware. For instance, very few e-commerce players in India are aware that they are “intermediaries” within the meaning of IT Act 2000. Further, there are very few e-commerce lawyers and law firms in India that can provide expert services in this regard.

Further, other laws, including intellectual property laws, make these e-commerce players labile for civil and criminal actions. For instance, these e-commerce players can be held liable for online infringement of copyright in India of the copyright owners.

Similarly, if any person posts an offending material at the e-commerce site or otherwise deal with the e-commerce site in an illegal manner, the e-commerce site owner may find himself in trouble.

Cyber law due diligence in India is one aspect that all e-commerce site owners must frequently engage in. The present laws of India are stringent in nature and subsequently claiming ignorance of such laws would not make much difference.

Perry4Law and Perry4Law Techno Legal Base (PTLB) strongly recommend that before opening an e-commerce site or business, the owner of the same must consult a good techno legal law firm that can advice him upon all the possible and applicable aspect of e-commerce laws in India.