FedEx and Online Pharmacy Issues
The blitz against online pharmacies was launched in 2005 and has resulted in dozens of arrests, thousands of websites being shut down, and tens of millions of dollars and medications seized worldwide as investigators expand their search.
FedEx Corporation (FedEx) appears to be the latest company accused in a federal probe involving illegal online pharmacies. FedEx, the operator of the world’s largest cargo airline, is facing over $800 billion in penalties after its July 17 indictment on charges that it conspired with illegal online pharmacies and knowingly delivered prescription drugs to customers who it knew lacked valid prescriptions.
FedEx, who handles over 10 million packages daily, says it will fight the charges that it knowingly shipped drugs to people who lacked valid prescriptions.
Other similar cases over the past four years include:
- In 2013, United Parcel Service (UPS) Inc. agreed to forfeit $40 million of its earnings from illegal Internet pharmacies shipping drugs using its services and work with investigators to detect suspicious activities. UPS has since changed its policies and procedures, including adding a compliance officer to monitor online pharmacies. Part of the compliance officer’s job is to report any suspicious activity to senior executives and federal investigators.
- In 2013, Walgreens agreed to pay an $80 million civil fine to resolve allegations that a distribution center and pharmacies in Florida failed to report suspicious drug orders of oxycodone and knew, or should have known, that prescriptions filled were not for legitimate medical use, according to the DEA.
- In 2011, Google Inc. agreed to pay $500 million to settle allegations by the United States Department of Justice that it profited from ads purchased by online pharmacies that Google knew were improperly selling prescription drugs.
- In 2010, CVS Caremark agreed to pay a $78 million civil fine to settle claims that some of its stores in California and Nevada allowed criminals to buy cold medications that were used to make methamphetamine.
Ultimately, many companies remain torn between how to respect the privacy of its customers while also sufficiently addressing their duty to uncover and report questionable internet pharmacies and thwart illegal drug activity.
Regardless, the filing of criminal charges against FedEx is an unprecedented escalation of a federal crackdown to combat prescription drug abuse, especially since the company is many steps removed from having to verify the patient-physcian or pharmacy-patient relationships. However, it is alleged that FedEx knowingly delivered the drugs to internet pharmacies that then supplied drugs to customers who filled out online questionnaires and were never examined by physicians, all in violation of federal and state drug laws.
The FedEx case will likely turn on what federal drug enforcers specifically told FedEx about the pharmacies and what Fedex knew about the online pharmacies. However, if the FedEx case determines that everyone in the supply chain is deemed to be responsible and has an obligation to fully understand where their products are ending up, the consequences could severely threaten the basic tenet of the shipping business and, ultimately, customer or patient privacy.