Parliamentary panel seeks implementation of e-pharmacy rules without delay

A parliamentary panel has asked the health ministry to finalise the draft e-pharmacy rules and implement them without further delay, expressing concern over the possible misuse of online pharmacies in the absence of regulation.

The health ministry said the government was considering the issue, including the option of banning e-pharmacies, according to a person aware of the matter.

The Department Related Parliamentary Standing Committee on Commerce said it was ‘appalled’ that the draft e-pharmacy rules had not been finalised till date.

“Undue delay in adopting a definitive regulatory framework results in uncertainty which is not conducive for the fast-paced digital markets,” the committee headed by Abhishek Manu Singhvi reiterated in the report.

The committee, in the 176th report, recommended that the health ministry formulate comprehensive guidelines in consultation with stakeholders. It said the online sale of medicines has not been regulated despite objections and concerns raised by stakeholders.

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“No decisions have been taken on the recommendations made by the Group of Ministers (GoM),” the committee noted. The health ministry told the committee that the government was considering the GoM’s recommendations.

Ban option

“Three groups of assistant secretaries, one each in the Ministry of Electronics and Information Technology, Department of Pharmaceuticals and Ministry of Health and Family Welfare were constituted to study the draft rules and submit their reports. Recommendations of assistant secretaries received from the respective departments were considered by the Ministry of Health and Family Welfare, and a few recommendations were agreed to,” the health ministry said.

“The GoM headed by Rajnath Singh, in its report, didn’t support the idea of e-pharmacy disbursing medicines online,” a top official of the health ministry told Moneycontrol, requesting anonymity.

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Government officials indicated the health ministry was deliberating on steps to regulate e-pharmacies, including the option of a permanent ban. This is because some online pharmacies were accused of violating the Drugs and Cosmetics Act, 1940, and breaching data privacy rules, a government official said.

“We are not in favour of e-pharmacies. We believe there are some key concerns emerging from their functioning and they need to be addressed,” a top ministry official said.

The official said collection of data on patterns of medicine consumption can be harmful and can be misused by online retailers.

“There is a rampant increase in antibiotic intake, which may enhance antimicrobial resistance due to unregulated consumption. There is also a concern of predatory pricing, which can impact retail pharmacy,” the official added.

The Drug Controller General of India had served notices to 20 online pharmacies for flouting provisions of the Drugs and Cosmetics Act.

“We have responded to the letter from the Drug Controller General. We believe we are in good compliance (with the law). The order (on running online pharmacies) has been enforced since 2018, and we've been very compliant with the law,” Prashant Tondon, cofounder of TATA1mg, told Moneycontrol.

Tondon, who is also chairperson of the FICCI e-pharmacy working group, said online pharmacies are open to the idea of new regulatory frameworks and would engage with the government on the matter.