E-pharmacies In India — Regulatory Landscape And Challenges

Sarthak Sarin (Principal Associate) and Bharat Gupta (Associate), Khaitan & Co, give an insight on the need for better regulations for governing e-pharmacies

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The e-commerce sector has grown exponentially over the last decade and has revolutionised the interplay between Internet and commerce worldwide. The growing infiltration of Internet and mobile phones coupled with the intrinsic convenience to indulge in retail activities online indicates that this sector is not only unrelentingly expanding in developed countries but is also contagiously spreading to developing geographies and markets as well.

India is not aloof from this unprecedented growth story. While online travel and ticketing continues to be the predominant driving force behind the growth of this industry in India, the online market for the sale of pharmaceutical drugs in India has (of late) stimulated considerable attention and investments. However, given the sensitive nature of the pharmacy business and the overwhelming layers of the compliance obligations that engulf the various aspects of the sale and storage of pharmaceutical products; the rise of e-pharmacy activities in India has unfortunately been viewed with suspicion by the local regulatory authorities and consequently has been marred by controversies. At the same time, the legal developments in this sector have not kept pace with this new business enterprise and its appears that the existing legal regime (which had been enacted keeping in view the traditional brick and mortar pharmacies) is inadequate to govern e-pharmacies. Some of the key challenges and concerns that arise from the application of the existing legal r