FDA stops online medicine sales
Chinese e-commerce giant Alibaba Group Holding Ltd has ceased online sales of medicine on its Tmall platform as the government tightens its control over the country’s nascent e-pharmacy industry.
Tmall, the business-to-consumer site of Alibaba, told its online vendors that the site will stop the online sales of medicines as of Aug 1, citing changes in government regulation.
The change put an end to China’s trial of selling drug products directly to consumers via online third-party platforms. The ban applies to other e-commerce companies involved in selling drugs on third-party platforms.
Analysts said that the regulation will not significantly hurt Tmall’s medicine business, as only an estimated 20 percent of its sales are drug products.