EDITORIALS

Competition to Sell Medicines

The battle between chemists and online pharmacies must be decisively resolved.

or some time now, retailers and e-commerce start-ups

have been fiercely battling it out in India, and the latest
to join are the chemists and online pharmacies. On
14 October, a little over eight lakh chemists across the country
remained shut to pressurise the government to take action
against the illegal online sale of medicines. It is no secret that
the retail drugs market provides a mouth-watering prospect
and continues to expand with present estimates putting it at a
yearly Rs 80,000 crore. The All India Organisation of Chemists
and Druggists (AIOCD) which is spearheading the attempt by
chemists to nip the nascent competition in the bud, claims that
the central government is being lethargic in putting a stop to
online sales. While the organisation is convinced that it is fighting on behalf of the public health, since online platforms are
susceptible to misuse, there is a large dose of cynicism in public
minds. The easy availability of many drugs in chemists outlets
without prescriptions (including antibiotics) and the reluctance
of many chemists to hire qualified pharmacists or pay them
adequately are among the issues that have come up again and
again over the years.
E-pharmacies, the popular moniker of online sellers of drugs,
are a new phenomenon in this country (their number is currently believed to be just 12). However, with the increasing use
of smartphones to access the internet and the growing popularity of online buying, this is a segment poised to expand. What is
adding to the ambiguity and exchange of allegations is that the
law neither provides for nor prohibits the sale of drugs online
the Drugs and Cosmetics Act 1940 obviously did not envisage
such a phenomenon. In August this year, the central government set up a subcommittee to draft norms for the sale of medicines online and is reportedly studying how this is done in
other countries. The AIOCD has pointed out that India is simply
unprepared for this form of sale of drugs and has raised the
alarm about illegal sale of prescription drugs, apart from
steroids and other substances that are harmful, if not prescribed by medical professionals. It has also made the interesting observation that such online sale is feasible in the developed world because the regulatory mechanism and agencies
function effectively there. Incidentally, the Maharashtra Food
and Drug Administration had raided the office of the well-known

e-commerce site Snapdeal for selling prescription drugs online

and other alleged violations.
The Drugs and Cosmetics Act requires the retailer to check a
licensed and registered doctors prescription in the presence of a
pharmacist (Section 18 (c)). Only over-the-counter (OTC) medicines can be sold without a prescription. The online start-ups point
out that every prescription received over the internet from a
potential customer is checked by in-house pharmacists. The AIOCD
members feel that while they have to implement a number of regulatory provisions, their online competitors seem to be getting
away easily. The other side, in turn, alleges that most of these requirements are hardly observed by the brick and mortar retailers
and it is simply competition for market share that is driving the
chemists agitation. As in the online sale of other items, the lower
prices and the privacy element coupled with home delivery are
said to tilt customers in favour of purchases from e-pharmacies.
There are the inevitable disadvantages which have led even the
United States Food and Drug Administration to warn customers
of such pharmacies of the huge risks involved. It has said that while
there are many websites that operate legally and offer convenience, privacy, and safeguards for purchasing medicines, the
rogue websites indulge in outright fraud such as not making
delivery of purchased drugs, and delivering spurious medicines.
The Indian Medical Association has unequivocally come out
against the online sale of drugs in its white paper on the subject.
It has listed in detail all the disadvantages and violations of
existing laws in this regard. The government now seems to be
caught between the e-commerce start-ups and giants who are
pressing it to come out with guidelines which will put them legally
in the clear and the chemists who want a total ban on the online
sale of medicines. Following the nationwide strike by the AIOCD,
it has said that it has not taken any decision in this regard and
that views of all stakeholders will be taken into account. However, it will have to be less ambiguous soon since the digital
revolution in India is not going to end soon.
The point then is how to regularise and monitor online sale of
medicines. If the track record of the regulatory agencies is anything to go by, there is a lot that needs to be done. Ultimately, it
is the health of the ordinary Indian and her access to affordable
medicines that should be the basic criterion.

octoBER 17, 2015

vol l no 42

EPW

Economic & Political Weekly