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Take Action Against E-pharmacy Companies: CAIT Urges Centre

They further said that it is essential to note that selling prescription drugs and medicines through online mediums is illegal

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The Confederation of All India Traders (CAIT), on Monday, raised the issue of malpractices practised by e-pharmacy giants in the digital space and urged the central government to take action against them. 

The trade body alleged that primarily Pharmeasy, Medlife, 1Mg, Netmeds (now owned by Reliance group), Amazon and Flipkart are conducting business practices in contravention of provisions of the Drug and Cosmetics Act, 1940 and misusing the e-commerce space by selling at low prices with 30 to 40 per cent discount and free shipping. 

It’s a case of capital dumping in e-pharmacies by foreign behemoths which is proving extremely detrimental to the future of the lakhs of crores of small chemists across the country, the trade body said in a statement 

"The retail chemists are the last mile connectivity and emergency provisioning is ensured by brick-and-mortar retailers who in turn also provide a livelihood to millions of retail pharmacies, their families and employees," it said. 

BC Bhartia, National President, and Praveen Khandelwal, Secretary-General, CAIT said that mushrooming of e-pharmacy is causing huge hardships to the retail chemists and distributors in the wake of anti-competitive practices like capital dumping and deep discounting leading to predatory pricing. 

They further said that it is essential to note that selling prescription drugs and medicines through online mediums is illegal.

The trade leaders added that the e-pharmacies like Pharmeasy and Medlife indulged in deep discounting on their platforms by giving a flat discount of 30 per cent. 

To capture the market even further, an additional cashback of 20 per cent is extended to customers with free shipping. Effectively, this translated to a whopping discount of around 40 to 45 per cent with free shipping," they alleged. 


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