The Centre is reportedly considering prohibiting online pharmacies due to concerns about the misuse of user data. According to sources, a Group of Ministers (GoM) has advocated for the closure of such platforms due to alleged industry malpractices and concerns about data privacy, predatory pricing, and the sale of medicines without prescriptions.
The development will have an immediate impact on the healthtech space, which is dominated by startups like Tata 1mg, NetMeds, PharmEasy, Flipkart, and Amazon.
According to one report, no firm decision has been made on the matter. According to a source, it is critical for the government to find solutions before giving the industry the green light.
This comes just a month after the Drugs Controller General of India (DCGI) issued notices to as many as 20 epharmacies for violating Drugs and Cosmetics Act, 1940 regulations.
The notice, which was sent to almost all major epharmacies, including Tata 1mg, Amazon, and Flipkart, asked these companies to explain why no action should be taken against them for breaking the rules.
Following that, reports surfaced that the Ministry of Health was considering harsh action, including a complete ban, against online pharmacies for delivering medicines without prescriptions and for data privacy concerns.
