June 29, 1999

The Honorable Robert Pitofsky
Chairman
Federal Trade Commission
Sixth and Pennsylvania Avenue, N.W.
Washington, D.C. 20580

Dear Commissioner Pitofsky:

As you know, the Committee on Commerce has been investigating a number of issues pertaining to the sale and distribution of pharmaceutical products over the Internet. As part of this effort, Committee staff have met with Federal Trade Commission (FTC) officials on several occasions to: (1) determine who is responsible for overseeing and regulating this emerging area of commerce, and (2) to determine the precise activities of the state and federal agencies involved in this effort. As indicated in previous correspondence, it remains unclear what agency or department is coordinating this effort. It also remains unclear what specific regulatory tasks are presently undertaken by those agencies and departments that appear to share jurisdiction in this matter. At a minimum this includes the Department of Justice, the Food and Drug Administration, and the FTC.

Recently, we addressed correspondence to you seeking answers to a series of questions about the FTC’s regulatory activities in this matter. We presume the issues identified in that letter are being addressed by your staff, and we anticipate your response.

Nevertheless, in addition to that request, we are now submitting for your agency’s review approximately100 web sites now apparently selling a range of pharmaceutical products from the Internet which make various claims about the use of different drugs. The volume and rapid emergence of these sites suggest that many sellers are not waiting for the federal and state agencies to formalize a regulatory approach to this problem.

Although the Internet holds great promise as a means of distributing pharmaceuticals, it also imposes considerable challenges to public health and safety and therefore state and federal regulators, particularly when it may place unwary consumers at considerable risk. Our goal is to work with the FTC to maintain the positive benefits of this new means of commerce, while reducing many of these risks.

Given the serious consumer protection and health consequences of this matter, we are requesting that the FTC review the following attached sites to provide us with the following:

(a) The physical location of each site, and in what States it sells its products;

(b) Whether the FTC has ever reviewed the site for any advertising or usage claims made regarding any pharmaceutical product(s) being sold; and,

(c) The accuracy of any such claims made by the site that fall under the FTC’s jurisdiction.

If you believe that any single State has already reviewed these numerous Internet sites for the above content, please list (a) the particular site in question, (b) the State and the name of the regulatory authority that conducted the review, and (c) the date of the review.

Please provide a response by July 29, 1999. If you have any questions on this matter, please have your staff contact Mr. Christopher Knauer at (202) 226-3400.

Sincerely,

JOHN D. DINGELL
RANKING MEMBER
COMMITTEE ON COMMERCE

RON KLINK
RANKING MEMBER
SUBCOMMITTEE ON OVERSIGHT AND INVESTIGATIONS

Enclosures