USTR Report on Online pharmacies - polity

NEWS: Nearly all of the 35,000 online pharmacies worldwide are operating illegally, according to the US Trade Representative’s annual report’s annual report on “notorious markets.”

 

WHAT’S IN THE NEWS?

  1. Risks to Consumers:
    • These illegal pharmacies pose significant health risks by selling ineffective, substandard, or dangerous drugs.
    • Many operate without valid licenses and offer medicines without requiring prescriptions or including proper safety warnings.
    • Their websites are designed to mimic legitimate e-commerce platforms, often with false claims of approval by the US Food and Drug Administration (FDA).
  2. Survey Findings:
    • A survey conducted by the Alliance for Safe Online Pharmacies’ Global Foundation found that nearly 25% of Americans who used online pharmacies encountered substandard, counterfeit, or harmful medicines.
  3. Federal Cases of Concern:
    • A network involving individuals from the US, the Dominican Republic, and India was found selling counterfeit prescription pills containing deadly synthetic opioids.
    • The pills, disguised as legitimate prescription drugs, led to at least nine deaths from narcotics poisoning between August 2023 and June 2024, as per federal prosecutors.
  4. Manufacturing Concerns:
    • Many of these counterfeit medicines are produced in unsanitary conditions and may contain harmful ingredients, adding further risks to consumers.

Global Concerns About Counterfeit and Pirated Products

  1. Countries Highlighted:
    • The report flagged 19 countries for issues related to counterfeit or pirated products.
    • It specifically called out online retailers, many of which are based in China and other parts of Asia, for engaging in the sale of counterfeit products or illegal activities.
  2. Counterfeit Medicines and Imported Ingredients:
    • The report highlighted the dangers of counterfeit medicines, which could include inert ingredients, allergens, or dangerous chemicals.
    • Imported ingredients, such as fentanyl from China, were flagged as contributing to the issue.

Progress in Combating Counterfeits and Piracy in USA

  1. Major Enforcement Successes:

·         A coordinated effort among US authorities, industry groups, and local police resulted in the shutdown of Fmovies, a Vietnam-based piracy ring, and other related piracy sites in mid-2024.

·         Fmovies, once the world’s largest pirated movies site, had recorded over 6.7 billion visits between January 2023 and June 2024.

·         In another Vietnam-linked case, operators of the pirate TV platform BestBuyIPTV were convicted, ordered to pay fines, and had their property confiscated.

·         Additional crackdowns were reported in Brazil, the UK, and Kuwait, targeting sellers of counterfeit goods such as designer purses, clothing, and footwear.

  1. Challenges Persist:

·         Despite enforcement, cyberlockers, which store and share pirated movies and other content, continue to thwart efforts to curb piracy.

·         Some internet service providers (ISPs), referred to as “bulletproof” ISPs, offer platforms that provide users with leeway to host or access piracy-related sites. One such ISP, Avito, a Russian-based advertising platform, was flagged for allowing counterfeit product advertisements.

Regulation of E-Pharmacies in India:

    • No Statutory Backing:
      1. The Drugs and Cosmetics Act, 1940 regulates the import, manufacturing and distribution of drugs in India.
        1. However, there is no statutory definition of “e-pharmacy” either under the Drugs and Cosmetics Act, 1940 or the Pharmacy Act, 1948.
      2. However, the electronic sale of physician-prescribed drugs from online drug store sites is expressed under the IT Act, 2000. 
    • The Draft e-pharmacy rules were floated by the Ministry of Health in 2018.
      1. Multiple court orders, including those from Bombay, Madras, Delhi, and Patna High Court, have called for regulating e-pharmacies.
    • The 172nd Parliamentary Standing Committee report released in June 2022, deemed it "appalling" that e-pharmacy rules had not been notified.

Laws that apply to online pharmacies in India:

  • Drugs and Cosmetics Act, 1940: This act applies to the online sale of drugs. 
  • Drugs and Cosmetic Rules, 1945: These rules apply to the online sale of drugs. 
  • Pharmacy Act, 1948: This act applies to the distribution of drugs. 
  • Information Technology Act, 2000: This act governs some legal issues related to online dealings. 

Other regulations

  • The Drugs Controller General of India (DCGI) can ban the online sale of medicines. 
  • Pharmacies must be registered with the CDSCO, the central drugs regulator. 
  • Pharmacies must have permits from state regulators for sales and distribution. 
  • A prescription from a registered medical practitioner is required for the sale of drugs online. 
  • Only a registered pharmacist can distribute drugs

The growth of e-pharmacy in India:

    • The growth of e-pharmacy in India has been significant in recent years and is expected to grow at a robust growth rate of 21.28% compound annual growth rate during 2021-2027.
    • The main factors driving this growth include increasing internet and smartphone penetration, rising healthcare costs, and a growing demand for convenience and accessibility.
    • The acute need for doorstep delivery of drugs was felt during Covid-19. Nearly 8.8 million households used home delivery services during the lockdown.
      1. E-pharmacies call themselves facilitators of doorstep delivery and claim tie-ups with retail chemists for vending medicines.

Conclusion

The USTR’s report highlights the widespread global challenges associated with counterfeit goods, piracy, and illegal online pharmacies. It acknowledges progress in enforcement efforts through collaborations between authorities and industries but emphasizes that significant challenges remain, particularly with the proliferation of counterfeit products, unsanitary drug production, and the persistence of piracy-enabling technologies and platforms.

Source: https://www.business-standard.com/world-news/us-notorious-markets-report-warns-of-risks-from-online-pharmacies-125010900734_1.html