Confederation of All India Traders
(An Apex Body of Trade Federation, Association & Non-Corporate Sector of India)
“Vyapar Bhawan”
925/1, Naiwala, Karol Bagh, New Delhi-110005,
Phone: +91-11-45032664, Telefax +91-11-45032665
E-mail: teamcait@gmail.com Website: www.cait.in
Ref. No.: 3377/1/50
16th March, 2022
Dr. Mansukh Mandaviya
Minister of Health and Family Welfare
Nirman Bhawan
New Delhi — 110011
Subject: Urgent need for prohibiting marketplace e-pharmacies in India to protect public health and safety
Dear Sir,
1. The Confederation of All India Traders (CAIT) is the representative body of over 8 crore small and medium traders and represents over 40 crore Indians who are directly and indirectly dependent on the sector for their sustenance. We have been representing issues and concerns of the trading community since 1990 and are writing to you requesting you to prohibit marketplace e-pharmacies from operating in India, in the interest of the Indian consumer.
2. As you may be aware, the manufacture for sale or for distribution or sale or stock or exhibit or offer for sale or, import, distribution and sale of medicines/drugs in India is governed by the Drugs and Cosmetics Act, 1940 (“DC Act”) and the Drugs and Cosmetics Rules, 1945 (“DC Rules”) amongst other legislations. The DC Act and Rules have clearly laid down a framework for the same which is based on ensuring that the standard and quality of drugs is maintained so that public health and safety is not compromised.
3. The provisions of the DC Act and DC Rules have been regulating the sector in all strictness and mandate — a) that no person can import, manufacture, sell or distribute any drug without a valid license; b) that no person can sell spurious or misbranded or adulterated drugs or drugs that are not of standard quality; c) that prescription drugs cannot be sold without original prescription of a registered medical practitioner (RMP) and d) that only a registered pharmacist can dispense medicines/drugs on the prescription of an RMP.
4. It is aptly clear that the intent of the Government of India in DC Act and DC Rules is simple — that the manufacture, import, sale and distribution of drugs must be done with due diligence and under the watchful eye of the law so that the health and safety of the consumer is paramount and is protected at all costs.
5. By means of this representation we would like to inform you that the intent and spirit of the DC Act and Rules are being flouted by certain marketplace e-pharmacies in India which are putting the health and safety of the Indian consumer at grave risk. While the benefits of e-commerce (including e-pharmacies) is substantial, it cannot override the intent of the law and will be deemed counterproductive if it harms or potential to harm public health. At this point, there is no law to expressly govern and regulate e-pharmacies in India and marketplace e-pharmacies such as pharmacies, Tatal Mg, Netmeds and Apollo Pharmacy along with e-commerce marketplace platforms such as Amazon and Flipkart are taking undue advantage and indulging in various malpractices like dispensing drugs without prescription, dispensing drugs without a registered pharmacist or makeshift pharmacist amongst others. Such practices have been harming consumers and putting their health and safety risk.
6. To ensure that the benefits of e-commerce — security, safety and convenience are made available to the Indian consumer, we propose that — only those c-pharmacies should be permitted which own their own inventory and are liable to he held fully responsible in case a consumer receives a spurious, adulterated or misbranded drug or those c-pharmacy portals which enable consumers to place an order while they deliver it through their local registered pharmacies/outlet. Therefore, it must be ensured that e-pharmacies not only own their inventory and all associated liabilities but also that the dispensation of drugs must be in strict compliance with the DC Act and Rules. It must be ensured that intermediaries are not permitted to sell drugs without being wholly liable to the compliance under DC Act and Rules.
7. It is common knowledge that marketplace e-commerce platforms often hide behind intermediary provisions of IT Act, 200 and shirk off any liability that may arise from the sale of counterfeit or fake or dangerous products on their platforms. This is especially problematic in the case of sale of drugs because sale of such drugs and the wrong dispensation of drugs can not only cause harm but. also be life-threatening. In furtherance of the same, the proposed framework will not only ensure that e-pharmacies be held responsible for consumer safety and health but also that the existing framework for sale and distribution of drugs under the DC Act and Rules will be complied with.
8. It is also important to note that in pursuance of the intent and spirit of the DC Act and DC Rules, drugs can only be sold and distributed by registered pharmacies within the State from which the license has been obtained. The Government of India had permitted e-pharmacies to make door step deliveries (home delivery) of drugs during the COVID- 19 lockdown but even this was permitted only within the same revenue district as that where the license was obtained. This is required for standard and quality control so that the efficacy of the drug is not compromised.
9. Therefore, we request your good self to issue directions to the following effect —
a) prohibit marketplace e-pharmacies from selling or distributing drugs in India;
b) permit only those e-pharmacies to sell drugs in India that wholly own their inventory or cause the sale of drugs through registered pharmacies only; and
c) ensure that the delivery of drugs is limited to the same revenue district where the pharmacy is registered/located.
10. These directions would be in consonance with the existing legal framework and would merely be an extension of the existing framework while will result in required facilitation to the consumers. Further, ban on marketplace intermediaries will put an end to the deep discounting and predatory pricing being done by leading e-pharmacy intermediaries by way of cash burning and will ultimately protect the interests and livelihood of millions of small traders.
We shall he happy to provide any information or assistance required in this regard.
Thank You. With regards
Yours truly
Praveen Khandelwal
National Secretary General
Confederation of All India Traders
