HR 5476 IH
106th CONGRESS
2d Session
H. R. 5476
To amend the Federal Food, Drug, and Cosmetic Act to enhance consumer
protection in the purchase of prescription drugs from interstate Internet
sellers.
IN THE HOUSE OF REPRESENTATIVES
October 17, 2000
Mr. BLILEY (for himself, Mr. KLINK, and Mr. UPTON) introduced the following
bill; which was referred to the Committee on Commerce
A BILL
To amend the Federal Food, Drug, and Cosmetic Act to enhance consumer
protection in the purchase of prescription drugs from interstate Internet
sellers.
Be it enacted by the Senate and House of Representatives of the United
States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act be cited as the `Internet Prescription Drug Consumer Protection
Act of 2000'.
SEC. 2. FINDINGS AND PURPOSE.
(a) FINDINGS- Congress makes the following findings:
(1) Legitimate Internet sellers of prescription drugs can offer
substantial benefits to consumers. These potential benefits include
convenience, privacy, valuable information, competitive prices, and
personalized services.
(2) Unlawful Internet sellers of prescription drugs may dispense
inappropriate, contaminated, counterfeit, or subpotent prescription drugs
that could put at risk the health and safety of consumers.
(3) Unlawful Internet sellers have exposed consumers to significant
health risks by knowingly filling invalid prescriptions, such as
prescriptions based solely on an online questionnaire, or by dispensing
prescription drugs without any prescription.
(4) The ease with which web sites can be created and removed and the
lack of readily available information to identify Internet sellers creates
significant barriers to effective law enforcement efforts against unlawful
Internet sellers.
(5) Consumers may have difficulty distinguishing legitimate from
unlawful Internet sellers, as well as foreign from domestic Internet
sellers, of prescription drugs.
(6) States need additional enforcement tools to take effective action
against unlawful domestic Internet sellers and the Federal agencies need
additional enforcement tools to take effective action against unlawful
foreign Internet sellers.
(b) PURPOSE- The purpose of this Act is to provide Federal and State law
enforcement with adequate tools to take effective action against interstate
Internet sellers of prescription drugs who illegally sell such drugs to
consumers in the United States and to protect such consumers against potential
harms that may result from purchasing such drugs from such sellers.
SEC. 3. AMENDMENT TO THE FEDERAL FOOD, DRUG, AND COSMETIC ACT.
(a) IN GENERAL- Chapter V of the Federal Food, Drug, and Cosmetic Act (21
U.S.C. 351 et seq.) is amended by inserting after section 503A the
following:
`SEC. 503B. INTERNET PRESCRIPTION DRUG SALES.
`(a) DEFINITIONS- For purposes of this section:
`(1) CONSUMER- The term `consumer' means a person (other than an entity
licensed or otherwise authorized under Federal or State law as a pharmacy or
to dispense or distribute prescription drugs) that purchases or seeks to
purchase prescription drugs through the Internet.
`(2) HOME PAGE- The term `home page' means the entry point or main web
page for an Internet site.
`(3) INTERNET- The term `Internet' means collectively the myriad of
computer and telecommunications facilities, including equipment and
operating software, which comprise the interconnected worldwide network of
networks that employ the Transmission Control Protocol/Internet Protocol, or
any predecessor or successor protocols to such protocol, to communicate
information of all kinds by wire or radio, including electronic mail.
`(4) INTERSTATE INTERNET SELLER-
`(A) IN GENERAL- The term `interstate Internet seller' means a person
whether in the United States or abroad, that engages in, offers to engage
in, or causes the delivery or sale of a prescription drug through the
Internet and has such drug delivered directly to the consumer via the
Postal Service, or any private or commercial interstate carrier to a
consumer in the United States who is residing in a State other than the
State in which the seller's place of business is located. This definition
excludes a person who only delivers a prescription drug to a consumer,
such as an interstate carrier service.
`(B) EXEMPTION- With respect to the consumer involved, the term
`interstate Internet seller' does not include a person described in
subparagraph (A) whose place of business is located within 75 miles of the
consumer.
`(5) LINK- The term `link' means either a textual or graphical marker on
a web page that, when clicked on, takes the consumer to another part of the
Internet, such as to another web page or a different area on the same web
page, or from an electronic message to a web page.
`(6) PHARMACY- The term `pharmacy' means any place licensed or otherwise
authorized as a pharmacy under State law.
`(7) PRESCRIBER- The term `prescriber' means an individual, licensed or
otherwise authorized under applicable Federal and State law to issue
prescriptions for prescription drugs.
`(8) PRESCRIPTION DRUG- The term `prescription drug' means a drug under
section 503(b)(1).
`(9) VALID PRESCRIPTION- The term `valid prescription' means a
prescription that meets the requirements of section 503(b)(1) and other
applicable Federal and State law.
`(10) WEB SITE; SITE- The terms `web site' and `site' mean a specific
location on the Internet that is determined by Internet protocol numbers or
by a domain name.
`(b) REQUIREMENTS FOR INTERSTATE INTERNET SELLERS-
`(1) IN GENERAL- Each interstate Internet seller shall comply with the
requirements of this subsection with respect to the sale of, or the offer to
sell, prescription drugs through the Internet and shall at all times display
on its web site information in accordance with paragraph (2).
`(2) WEB SITE DISCLOSURE INFORMATION- An interstate Internet seller
shall post in a visible and clear manner (as determined by regulation) on
the home page of its web site, or on a page directly linked to such home
page--
`(A) the street address of the interstate Internet seller's place of
business, and the telephone number of such place of business;
`(B) each State in which the interstate Internet seller is licensed or
otherwise authorized as a pharmacy, or if the interstate Internet seller
is not licensed or otherwise authorized by a State as a pharmacy, each
State in which the interstate Internet seller is licensed or otherwise
authorized to dispense prescription drugs, and the type of State license
or authorization;
`(C) in the case of an interstate Internet seller that makes referrals
to or solicits on behalf of a prescriber, the name of each prescriber, the
street address of each such prescriber's place of business, the telephone
number of such place of business, each State in which each such prescriber
is licensed or otherwise authorized to prescribe prescription drugs, and
the type of such license or authorization; and
`(D) a statement that the interstate Internet seller will dispense
prescription drugs only upon a valid prescription.
`(3) DATE OF POSTING- Information required to be posted under paragraph
(2) shall be posted by an interstate Internet seller--
`(A) not later than 90 days after the effective date of this section
if the web site of such seller is in operation as of such date;
or
`(B) on the date of the first day of operation of such seller's web
site if such site goes into operation after such date.
`(4) QUALIFYING STATEMENTS- An interstate Internet seller shall not
indicate in any manner that posting disclosure information on its web site
signifies that the Federal Government has made any determination on the
legitimacy of the interstate Internet seller or its business.
`(5) DISCLOSURE TO STATE LICENSING BOARDS- An interstate Internet seller
licensed or otherwise authorized to dispense prescription drugs in
accordance with applicable State law shall notify each State entity that
granted such licensure or authorization that it is an interstate Internet
seller, the name of its business, the Internet address of its business, the
street address of its place of business, and the telephone number of such
place of business.
`(6) REGULATIONS- The Secretary is authorized to promulgate such
regulations as are necessary to carry out the provisions of this subsection.
In issuing such regulations, the Secretary--
`(A) shall take into consideration disclosure formats used by existing
interstate Internet seller certification programs; and
`(B) shall in defining the term `place of business' include provisions
providing that such place is a single location at which employees of the
business perform job functions, and not a post office box or similar
locale.'.
(b) STATE ENFORCEMENT OF FEDERAL LAW REGARDING INTERNET SELLERS OF
PRESCRIPTION DRUGS- Chapter III of the Federal Food, Drug, and Cosmetic Act
(21 U.S.C. 331 et seq.) is amended by adding at the end the following:
`STATE PROCEEDINGS REGARDING INTERNET SALES OF PRESCRIPTION DRUGS
`SEC. 310A. (a) IN GENERAL- A State, through its attorney general, may
bring in its own name, and in an appropriate district court of the United
States, proceedings against an interstate Internet seller of a prescription
drug for the civil enforcement, or to restrain violations of section 503B(b),
or paragraph (1) or (2) of section 503(b), on behalf of consumers who reside
in that State and have been or are being adversely affected by such
violations. Through such proceedings, the State may with respect to such
violations--
`(1) obtain a permanent nationwide injunction;
`(2) enforce compliance; or
`(3) obtain such other relief as the court may find appropriate.
`(b) NOTICE TO SECRETARY AND APPROPRIATE FEDERAL AGENCIES- A State--
`(1) shall serve prior written notice of any civil action under
subsection (a) upon the Secretary and the appropriate Federal agencies and
provide to the Secretary and such agencies a copy of its complaint, except
in any case where such prior notice is not feasible, in which case the State
shall serve such notice immediately upon instituting such action; and
`(2) may proceed with the civil action unless another State attorney
general or a Federal agency has filed a complaint against the same party for
the same violations under this section prior to receiving notice and the
civil action brought by the State attorney general or such agency is still
ongoing or there has been a final judgment.
`(c) RIGHTS OF PRESIDENT- The President shall have the right to intervene
in any action brought under
subsection (a), and upon so intervening, to be heard in all matters arising
therein and to file notices of appeal.
`(d) APPLICABILITY OF SUBPOENAS- Subpoenas for witnesses who are required
to attend a court of the United States, in any district, may run into any
other district in any proceeding under this section.
`(e) CONSTRUCTION- For purposes of bringing any civil action under
subsection (a), nothing in this section shall prevent a State attorney general
from exercising the powers conferred on the attorney general by the laws of
such State to conduct investigations or to administer oaths or affirmations or
to compel the attendance of witnesses or the production of documentary or
other evidence or to bring an action under the laws of such State to obtain
remedies under that State's laws.
`(f) DEFINITIONS- For purposes of this section, the terms `interstate
Internet seller', `Internet', and `prescription drug' have the meanings given
such terms in section 503B.'.
(c) PROHIBITED ACTS- Section 301 of the Federal Food, Drug, and Cosmetic
Act (21 U.S.C. 331) is amended by adding at the end the following:
`(aa) The failure to post information required under section 503B(b)(2) or
for knowingly making a materially false statement when posting such
information as required under such section or violating section
503B(b)(4).'.
SEC. 4. PUBLIC EDUCATION.
The Secretary of Health and Human Services shall engage in activities to
educate the public about the dangers of purchasing prescription drugs from
unlawful Internet sources. The Secretary should educate the public about
effective public and private sector consumer protection efforts, as
appropriate, with input from the public and private sectors, as
appropriate.
SEC. 5. STUDY REGARDING COORDINATION OF REGULATORY ACTIVITIES.
Not later than 180 days after the date of enactment of this Act, the
Secretary of Health and Human Services, after consultation with the Attorney
General, shall submit to Congress a report providing recommendations for
coordinating the activities of Federal agencies regarding interstate Internet
sellers that operate from foreign countries and for coordinating the
activities of the Federal Government with the activities of governments of
foreign countries regarding such interstate Internet sellers.
SEC. 6. CIVIL ACTIONS REGARDING PROPERTY.
Section 303 of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 333) is
amended by adding at the end the following subsection:
`(i)(1) If a person is alienating or disposing of property, or intends to
alienate or dispose of property which is obtained as a result of or is
traceable to a violation by an interstate Internet seller of paragraph (1) or
(2) of section 503(b), the President may commence a civil action in any
Federal court--
`(A) to enjoin such alienation or disposition of property; or
`(B) for a restraining order to--
`(i) prohibit any person from withdrawing, transferring, removing,
dissipating, or disposing of any such property or property of equivalent
value; and
`(ii) appoint a temporary receiver to administer such restraining
order.
`(2) Proceedings under paragraph (1) shall be carried out in the same
manner as apply under section 1345 of title 18, United States Code.'.
SEC. 7. EFFECTIVE DATE.
The amendments made by this Act shall take effect 6 months after the date
of enactment of this Act, except that the authority of the Secretary of Health
and Human Services to commence the process of rulemaking is effective on the
date of enactment of this Act.
SEC. 8. AUTHORIZATION OF APPROPRIATIONS.
There is authorized to be appropriated to carry out this Act such sums as
may be necessary.
END