Centre working on regulating e-pharmacies over data misuse concerns, say sources

The Centre is working on policies to regulate e-pharmacies over data misuse concerns, sources told India Today. This development may be seen as a setback for e-pharmacy players like Flipkart, Tata 1mg, NetMeds, MediBuddy, Practo, Apollo, and other firms that offer high discounts on medicines. Sources said the Group of Ministers (GoM) held a meeting, and it didn't propose the idea of e-pharmacy.

With the e-pharmacy business being a risky proposition, along with the concession race in the sector, there is a likelihood of data misuse concerns, said sources. "It (data misuse) will increase the risk involved with patient safety. The exercise to regulate e-pharmacy is on," they said.

Last month, the country's drug regulator - Drugs Controller General of India (DCGI) - sent show-cause notices to e-commerce behemoths Amazon, Flipkart Health Plus, and 20 other online merchants for the illegal sale of drugs online. It said the e-pharmacies were "found to be engaged in such activities without a licence".

"...You are hereby asked to show cause within 2 days from the date of issue of this notice, why action shall not be taken against you for sale, or stock, or exhibit or offer for sale or distribution of drugs in contravention of the provisions of the Drugs and Cosmetics Act 1940 and rules made thereunder," the notice read.

The notification, dated February 8, by DCGI's VG Somani, cited a Delhi High Court judgement dated December 12, 2018. The notification prohibits the sale of drugs online without a licence.

The regulator forwarded the directive to all states and union territories for mandatory action and compliance. The notification stated that the sale, stock, show, or offer for sale or distribution of any drug required a licence from the relevant state licencing body, and that licence holders must comply with the conditions of the licence.

According to the news agency PTI, Flipkart Health Plus, a digital healthcare marketplace platform that sells inexpensive pharmaceuticals, also got the notice from DCGI. Flipkart Health plus said that it received the notice from CDSCO (Central Drugs Standard Control Organisation) and was responding to it appropriately.

"As an organisation, we remain committed to complying with the laws of the land and towards continuous improvements of our processes/checks and controls on our marketplace platform to build trust and enhance customer experience," it stated.