South Chemists & Distributors Association (SCDA) has sharply criticized the National Pharmaceutical Pricing Authority (NPPA) for recognizing e-pharmacies in its recent Office Memorandum (OM). SCDA claims that e-pharmacies are unregulated and thus illegal under the Drugs & Cosmetics Act. SCDA has also requested NPPA to provide public access to the price list of medicine on the internet, instead of insisting on physical display in pharmacies.

Key Highlights:
SCDA Calls for NPPA to De-List E-Pharmacies from Official Documents

• SCDA believes that e-pharmacies are still illegal according to the Drugs & Cosmetics Act.

• The Association has contested the legality of online pharmacies in Delhi High Court, where the case is pending.

• SCDA believes that NPPA's inclusion of e-pharmacies in official documents goes against current laws.

Resistance to Mandatory Physical Price Display in Pharmacies

• NPPA's recent OM mandates all pharmacies, including online pharmacies, to post price lists under DPCO, 2013.

• SCDA asserts that it is not feasible for pharmacies to post 50,000+ Stock Keeping Units (SKUs) of medicines.

• A pharmacy carries on average 1,500 to 10,000 SKUs and compliance becomes logistically impossible.

SCDA Recommends NPPA to Establish an Online Price Portal

• Instead of price display physical, SCDA suggests an NPPA-run website on which the most current price lists of all drugs are made available in the public domain.

• This technologically enabled move would enhance transparency and enable patients to compare prices at the click of a mouse.

NPPA's Stand and Warning Against Non-Compliance

• NPPA defends its order based on Para 24(4) of the DPCO, 2013, requiring retailers to keep price lists on display in a "conspicuous part of the premises."

• NPPA asserts that this requirement applies to both physical and online platforms where medicines are sold.

• The Authority warns of strict action against those failing to comply with DPCO, 2013 and the Essential Commodities Act, 1955.

SCDA is strongly opposed to NPPA's acceptance of e-pharmacies, and urges their deletion from regulatory policy. The Association further insists on a technology-based solution to price transparency, pushing for unrealistic physical display requirements instead. While Delhi High Court judges the constitutionality of online pharmacies, the issue is going to continue to be an Indian pharmaceuticals hot potato.