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Downfall of the Online Pharmacy: The Legal Climate for Online Drug Sales
Updated: April 16, 2001
by Asha Richards - New York Bureau


Main Topic: Downfall of the Online Pharmacy: The Legal Climate For Online Drug Sales

As one of the most profitable industry groups in the U.S., online drugstores were expected to revolutionize healthcare. Instead, it appears these online businesses can easily become entangled in a web of legal and ethical issues. Hundreds of these web sites have appeared, both foreign and domestic. Meanwhile, critics and proponents alike have kept a watchful eye on how online drugstores fared.

Recently, on March 6, 2001, federal and state agents shut down a pharmacy suspected of illegally selling large quantities of prescription drugs online. “Mainstreet Pharmacy”, in Oklahoma, and their website “nationpharmacy.com” were the target. Authorities allege that the pharmacy filled 1,651 prescriptions for controlled substances in one week and refilled approximately 800 prescriptions per day. One can only wonder, “Will raids like this color the future of online pharmacies?”

Agents raid online pharmacy
- Oklahoma online drugstore raided
http://news.cnet.com/news/0-1007-200-5045630.html

Online drugstore faces state lawsuit
- Kansas officials sue seven online pharmacies for selling prescriptions to minors without involving a physician
http://www.cnn.com/TECH/computing/9906/15/drugsuit.idg/


Sub-Topic 1: What is Out There? The Shapes and Forms of Online Pharmacies

Online pharmacies, typically exist in three forms. The more traditional method fills prescriptions previously obtained from a licensed physician, requiring submission of the prescription before it is filled. Another category, which is typical of most online pharmacies, offers a two-part service. First, an online doctor diagnoses a patient, usually via questionnaire. After this pseudo “e-diagnosis”, a doctor prescribes medication that can be purchased on the Web site. This format presents an obvious conflict of interest. The most troubling type of online pharmacy from a U.S. regulatory perspective merely requires a credit card to purchase prescription drugs; these are mainly foreign pharmacies.

Self-Medication and The Threat to Legal Health
- overview of online drugstores and legal issues
http://www.law.com


Sub-Topic 2: Myriad of Legal Issues Involved

Numerous federal and state laws currently, or potentially can, address the sale of prescription drugs online. Current federal legislation regulating the sales of drugs are The Food, Drug and Cosmetic Act (FDCA) (http://www.fda.gov) and The Controlled Substances Act (CSA), both of which prohibit the dispensing of drugs without a prescription. The CSA can be interpreted to bar prescriptions written by a physician based on information obtained solely from an online questionnaire. Furthermore, online pharmacies need to be aware of Federal Trade Commission (http://www.ftc.gov) provisions regulating fair representations on Web sites.

To add to these federal laws, online pharmacies have to tackle state-by-state licensing laws of physicians and the dispensing of drugs. Finally, there is the obligation of pharmacists to counsel patients regarding possible interactions and alternatives, requiring online pharmacies to establish and maintain individual patient records.

Online Drug Sales Cause Legal Headaches
- overview of online pharmacies
http://www.gigalaw.com/articles/grossman-2000-06a-p1.html

Regulation of the Sale of Pharmaceuticals On-line
- outline of the regulation of online pharmacies
http://www.gase.com/cyberlaw/toppage1.htm


Sub-Topic 3: What has Been Done? Government Action, Legislation, and Self-Regulation

Overall, little has been done to address the legal issues of online pharmacies. In 1999, the House Committee held a hearing on the matter of “Drugstores on the Net: The Benefits and Risks of On-Line Pharmacies”. That effort was followed by the Internet Pharmacy Consumer Protection Act, which failed to make it to the House Floor. Self-regulation of the industry also commenced in 1999, with the Verified Internet Pharmacy Practice Sites Program (VIPPS), which set some basic standards. A coalition of state and federal regulatory agencies, professional associations and consumer advocacy, VIPPS is an information and verification site that identifies certified members on their web site by a hyperlink seal. The FDA is said to have raised its eyebrow at the industry and the verdict of the court system is not in as of yet. Ultimately, regardless of the failure to pass new legislation, online pharmacies need to vigilantly address all these burgeoning legal issues.

Verified Internet Pharmacy Practice Sites Program (VIPPS)
- National Association of Board of Pharmacy verification site for online drugstores
http://vipps.nabp.net/

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