Both Offline, Online Pharmacies Must Display Drug Prices, Non-Compliance Punishable: NPPA

Background: Existing Rules and Recent Changes

Previously, Para 24 and 25 of DPCO, 2013 required physical retail stores to display price lists in a visible location on their premises. As per Para 24 of the Drugs (Price Control) Order, 2013;

"24(3) Every manufacturer shall issue a price list, if required in form-V or Form-VI to the dealers, state Drugs Controllers and the Government indicating reference to such price fixation or revision as covered by the order or Gazette notification issued by the Government, from time to time.

24 (4) Every retailer and dealer shall display the price list and the supplementary price list, if any, as furnished by the manufacturer; on a conspicuous part of the premises where he carries on business in a manner so as to be easily accessible to any person wishing to consult the same. '

Similar provisions are incorporated in Para 25 of DPCO 2013 for Non-scheduled drugs.

However, there was no explicit mention of online pharmacies and e-commerce platforms. This created ambiguity, leading to inconsistencies in price disclosure across different sales channels.

To address this, NPPA has now clarified that the phrase "on a conspicuous part of the premises where he carries on business" also applies to digital and online spaces. The Authority said;

"The use of terminology 'on a conspicuous part of the premises where he carries on business' under Para 24(4) and 25(3) of DPCO, 2013 covers not only the physical premises where the retailer/dealer carries on business but also covers the virtual/online/electronic premises where the retailer/dealer carries on business."

What This Means for Retailers (Offline Pharmacies) and Online Pharmacies

All retailers, including online pharmacies, must display updated drug prices clearly on their websites, mobile apps, and e-commerce platforms. This requirement ensures that consumers can access accurate and consistent pricing information, regardless of the sales channel they choose. The displayed prices should match the latest price list issued by drug manufacturers or marketers. NPPA ordered;

"All the retailers and dealers including online pharmacies carrying on business of purchase or sale of drugs through physical mode as well as online mode i.e. through website/online portal/mobile App e-commerce platforms or any other online mode are required to display the current price list as per the provisions of DPCO 2013."

Consumers will benefit from greater transparency and uniformity in drug pricing across all retail channels. By enforcing this rule, NPPA seeks to create a fair marketplace where both online and offline customers receive the same pricing information, leading to better trust and accountability in the pharmaceutical industry.

Consequences of Non-Compliance

The Authority has made it clear that failure to comply with these rules will lead to penalties. It warned;

"All the retailers and dealers including online pharmacies carrying on business of purchase or sale of drugs through physical mode as well as online mode are required to display the current price list as per the provisions of DPCO, 2013. Violation of Para 24 and 25 of DPCO, 2013 is punishable under Section 7 of the Essential Commodities Act, 1955."

This means any retailer, whether operating through a physical store or an online platform, found not displaying the price list as required may face legal action under this law.

Implementation and Next Steps

The NPPA has instructed all retailers, dealers, and online pharmacies to ensure compliance to Para 24 and 25 of DPCO,2013 by displaying the current price list issued by manufacturer/marketer failing which appropriate action may be initiated against the defaulting company as per the provisions of DPCO, 2013 read with Essential Commodities.