HC bans online sale of medicines, asks Centre to notify rules

Directing the Centre and Central Drugs Standard to notify the proposed Drugs and Cosmetics Amendment Rules, 2018, in the Gazette at the earliest and not later than January 31, 2019, Justice Pushpa Sathyanarayana said, “Persons doing trade in online pharmacy have to obtain their licences as prescribed in the rules to be notified, within two months from the date of such notification and till the aforesaid rules are notified, the online traders are bound not to proceed with their online business in drugs and cosmetics.” However, following submissions by online players that such traders will be forced to unplug the trade of online medicines till they prefer an appeal, the judge said, “Having regard to the submissions of either side, the order passed on Monday will not be given effect till 10.30 am on December 20, 2018.”

The stay on online sale of medicine was passed based on a plea moved by the Tamil Nadu Chemists and Druggists Association that permitting sale of drugs through internet/online defeats the purpose of the Drugs and Cosmetics Act (D&CA). The plea sought to block the link of all such websites, which are carrying on the sale of Schedule H, H1 and Schedule X medicines in violation of D&CA rules, till licences are granted to sell medicines online. The online players had contended that online sales is facilitated from licenced pharmacies, which is not in violation of Rules 61 and 65 of D&C Rules. It was also argued that online platforms only connect consumers to the brick and mortar pharmacies and there is no provision under the D&C Act prohibiting the working of such technology platforms.

However, Justice Pushpa Sathyanarayana said, “In this case also, there is a statute, the regulatory rules are yet to be notified, in the wake of advancement of technology. Unless the legislation keeps pace with the technology, the commerce based on technology has to lag behind.”