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Keeping Online Pharmacies In Line

This article was originally published in Start Up

Executive Summary

President Clinton has announced that he will include in the FY 2001 budget an initiative to protect consumers from "fly by night Internet pharmacies." In particular, the proposal includes provisions requiring retail drug websites to obtain federal approval, imposing civil penalties of $500,000 per violation for selling prescription drugs without a proper prescription, and granting the FDA enhanced investigatory and subpoena powers. Although the legislation would appear to benefit the more established online drugstores, like PlanetRx and Drugstore.com, the major players are assuming a wait-and-see attitude.

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