Illegal Online Pharmacies And Prosecutions In China

Illegal Online Pharmacies and Criminal Regulation in China

I. Legal Framework

1. Criminal Law of the PRC (《中华人民共和国刑法》)

Relevant Articles for Prosecution:

Article 151 – Production and Sale of Counterfeit or Substandard Drugs

Applies when drugs are sold that violate quality standards, causing harm or risk to public health.

Criminal penalties: imprisonment 3–10 years, plus fines.

Article 140 – Illegal Sale of Prescription Drugs or Narcotics

For selling controlled substances without license or prescription, including online.

Article 225 – Illegal Business Operations

Covers illegal online business activities conducted without proper registration or license.

Drug Administration Law & E-commerce Law (supporting regulations)

Online pharmacies must have a license, pharmacist oversight, and compliance with drug approval rules.

Violation can trigger administrative sanctions and criminal liability if harm occurs.

II. Why Online Pharmacies Are Regulated

Public Health Risks: Counterfeit, expired, or unregistered drugs can seriously harm patients.

Ease of Distribution: Online platforms make it easy to bypass regulatory controls.

Cross-Border Risks: Drugs imported illegally online may evade customs and quality checks.

Fraud and Misrepresentation: False claims about drug efficacy or treatment capabilities are common.

⚖️ III. Representative Cases of Illegal Online Pharmacies

Here are six detailed cases illustrating prosecution in China:

Case 1 — Zhejiang “Fake Cancer Drugs Online” (2019)

Court: Hangzhou Intermediate Court
Charges: Selling counterfeit drugs (Art. 151)

Facts:

Defendant sold “anti-cancer drugs” via WeChat and a website.

Drugs were unregistered and counterfeit.

Total sales: ¥3 million; victims: ~120 patients.

Legal Issues:

Whether online sales constitute “sale of counterfeit drugs”
→ Court: Yes, digital sale = sale in law.

Whether the platform operator is liable
→ Only if they knew the drugs were fake.

Outcome:

Organizer: 8 years imprisonment + ¥500,000 fine

Platform assistants: 3–4 years

Precedent Value:
Established that selling counterfeit drugs online is treated the same as offline sale under Art. 151.

Case 2 — Beijing “Unauthorized Online Pharmacy Selling Narcotics” (2020)

Court: Beijing No.2 Intermediate Court
Charges: Illegal sale of narcotics (Art. 140)

Facts:

Defendant sold prescription painkillers and sedatives online without license.

Customers placed orders via mobile app; drugs shipped nationwide.

Total sales: ¥1.2 million; estimated 2,000 people purchased drugs.

Legal Issues:

Whether online pharmacy requires a license
→ Court: Mandatory; lack of license = illegal operation

Whether sending prescription drugs without prescription = criminal
→ Court: Yes

Outcome:

Organizer: 6 years imprisonment + fine

Warehouse staff: 2–3 years imprisonment

Precedent Value:
Clarified online sale of controlled drugs without license or prescription = criminal offense.

Case 3 — Guangdong “WeChat Pharmacy Selling Fake Heart Drugs” (2018)

Court: Guangzhou Intermediate Court
Charges: Production and sale of counterfeit drugs; illegal business operations

Facts:

Online sellers used WeChat to distribute “heart disease treatment drugs.”

Drugs were unlicensed and misbranded.

Profit: ¥2.5 million; 50+ patients hospitalized.

Legal Issues:

Responsibility of the online operator vs. individual seller
→ Court: Main organizer liable; assistants punished as co-conspirators

Outcome:

Main organizer: 7 years imprisonment + ¥300,000 fine

Assistants: 3–4 years imprisonment

Drugs confiscated and destroyed

Precedent Value:
Emphasizes WeChat and online messaging platforms are considered channels of sale, making operators liable.

Case 4 — Shandong “Cross-Border Online Drug Sale” (2021)

Court: Jinan Intermediate Court
Charges: Smuggling and illegal sale of drugs; production and sale of counterfeit drugs

Facts:

Defendants imported prescription medications from abroad and sold online without registration.

Drugs included cancer medications and antibiotics.

Total value: ¥5 million; victims across multiple provinces.

Legal Issues:

Whether imported online drugs without approval = criminal offense
→ Court: Yes; violates Drug Administration Law + Art. 151/140

Whether website operators can be criminally liable
→ Yes, if they know drugs are illegal.

Outcome:

Organizers: 9–10 years imprisonment

Tech/website staff: 3–5 years imprisonment

Drugs seized

Precedent Value:
Clarifies cross-border illegal drug sales online = criminally punishable.

Case 5 — Shanghai “Fake Vaccines Online Pharmacy” (2016)

Court: Shanghai First Intermediate Court
Charges: Production and sale of counterfeit vaccines; endangering public health

Facts:

Illegal online pharmacy sold “child vaccines” that were fake.

Several children suffered adverse reactions; public panic ensued.

Legal Issues:

Whether online sale of vaccines counts as “endangering public health”
→ Court: Yes; fake vaccines pose serious social risk

Outcome:

Organizers: 12 years imprisonment + heavy fines

Assistants: 4–6 years imprisonment

Precedent Value:
Sets strong precedent for criminal liability of online pharmacies selling counterfeit vaccines, highlighting public health risk.

Case 6 — Hubei “Illegal Online Sale of Traditional Chinese Medicine” (2020)

Court: Wuhan Intermediate Court
Charges: Illegal sale of drugs; illegal business operations

Facts:

Online sellers distributed unregistered herbal remedies claiming to treat COVID-19.

Sold through websites and social media.

Total revenue: ¥1.5 million; consumers misled and at risk.

Legal Issues:

Whether TCM products without registration constitute “illegal drugs”
→ Court: Yes, if advertised for medical treatment and unlicensed

Liability for exaggeration of efficacy claims

Outcome:

Main organizer: 5 years imprisonment + fine

Promoters: 2–3 years imprisonment

Precedent Value:
Confirms unregistered TCM sold online with medical claims = criminal offense.

IV. Key Legal Takeaways

Online pharmacies must be licensed and supervised by qualified pharmacists.

Selling counterfeit or unapproved drugs online = Art. 151/140 offense.

Cross-border online sales without approval = serious criminal liability.

Digital platforms (WeChat, websites, apps) are considered sale channels, making operators liable.

Fake vaccines or critical medicines = aggravated penalties due to public health impact.

Fines and imprisonment scale with harm caused, profits, and organizational role.

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