Internet Pharmacies: Regulation of a Growing Industry

“US Internet Pharmacy Sales ‘At Least $ 1.4 Billion by 2001’” Marketletter, January 3, 2000.

“HMOs, PPOs, Pharmacy Chains Take Business to the Internet With New Deals,” Managed Care Week, January 17, 2000.

“Net Pharmacies Make Mark,” Chain Drug Review, November 22, 1999.

Frederick James , “Walgreen Watchers Upbeat about Chain's Web Strategy,” Drug Store News, December 13, 1999.

Although not technically considered an Internet pharmacy because they do not directly dispense drugs, web sites exist that prescribe drugs to patients after they fill out a relatively short questionnaire. This has caused concern among the states because the law regulating pharmacies requires direct patient-physician contact for the prescribing of drugs.

Many, if not all, of these web sites have disclaimers that absolve the company of any responsibility regarding the law or other rules that may affect the buyer and also release them from any liability should a government seize the drug before it reaches the consumer.

National Association of Boards of Pharmacy, Verified Internet Pharmacy Practice Sites (visited February 15, 2000) <http://www.nabp.net/vipps/intro.asp>.

Ukens Carol , “New Coalition Set To Monitor Internet Pharmacy Practices,” Drug Topics, December 6, 1999.

U.S. Food and Drug Administration, Buying Medical Products Online (visited February 16, 2000) <http://www.fda.gov/oc/buyonline/default.htm>.

“FDA Website Advice On-Line Drug Purchases,” Marketletter, January 3, 2000.

Food and Drug Administration, FDA Launches “Cyber” Letters Against Potentially Illegal, Foreign-based Online Drug Sites (visited February 24, 2000) <http://www.fda.gov/bbs/topics/ANSWERS/>.

The Clinton-Gore Administration FY2001 Budget, From Digital Divide to Digital Opportunity (visited February 16, 2000) <http://www.whitehouse.gov/WH/New/00Budget/IV_web_budget_highlights.html#07>.

Fleming Harris Jr. , “Eyeing E-Tailing: Response to Clinton's e-pharmacy Plan Mostly Positive, With Some Major Reservations,” Drug Topics, January 17, 2000.

“Online Rx: Bliley Questions FDA Involvement in Rx Sales,” American Health Line, February 4, 2000.

“Online Pharmacies: Clinton Proposes Greater FDA Authority Over Online Pharmacies; Reactions Skeptical,” 9 Health Law Reporter (BNA), at 12 (2000).

Pear Robert , “Online Sales Spur Illegal Importing of Medicine to U.S.,” The New York Times, January 10, 2000, at A1.

For instance, if the consumer's health insurance requires the patient to pay only a copayment or small percentage of the cost of the medication, the difference in price between the United States and a foreign pharmacy may be negligible. However, if the consumer has no health insurance or the insurer will not pay for the medication, the consumer may save a great deal of money through such web sites, depending on the particular price offered by the foreign pharmacy and the shipping costs.

See “States Act to Ban Online Pharmacies,” Pharmaceutical Litigation Reporter , December 1999, Vol. 15, No. 7 at 6; “State Lawmakers Set Priorities,” Drug Topics, February 7, 2000, Vol. 144, No. 3 at 104; “Michigan: AG Issues Warnings to Online Pharmacies For Illegally Selling Drugs Via Internet,” 8 Health Law Reporter (BNA), at 2002 (1999).

Gemignani Janet , “Cyberpharmacies Zapped By State Regs,” Business & Health, December 1, 1999, Vol. 17, No. 12 at 12.

“States Act to Ban Online Pharmacies,” Pharmaceutical Litigation Reporter, December 1999, Vol. 15, No. 7 at 6.

“Michigan Probes On-Line Pharmacies,” Drug Topics, February 7, 2000, Vol. 144, No. 3 at 7.