Statement by Rep. Tom Bliley (R-VA). Hearing: House Oversight and Investigations Subcommittee. Re: Drugstores on the Internet. Date: July 30, 1999. Source: House Commerce Committee.

Today, this committee continues the work it began last year, examining various aspects of doing business on the Internet - known as e-commerce.

I have been a strong advocate and promoter of the consumer benefits of electronic commerce. This marketplace grows by leaps and bounds every month, revolutionizing the way America and the world conduct business.

As e-commerce continues its extraordinary growth, it can greatly improve the lives of ordinary Americans. This is especially true when it comes to the delivery of necessary prescription medication. Millions of Americans are dependent on prescription medication. On-line pharmacies have the potential to increase access and lower the cost of prescription drugs for millions of Americans.

In an age in which the words 'time deficit' have entered the popular vocabulary, the ability to have necessary prescriptions delivered to the front door by overnight delivery, and at a real cost savings, is a tremendous convenience for time-pressed working families.

For the disabled and for the millions of senior citizens who have difficulty getting around, this new marketplace has the potential to drastically improve their access to medications, and thus their quality of life.

However, we must not be blind to the vast potential of the Internet to attract unscrupulous operators, who set up sites to sell their wares, without the best interest or safety of consumers in mind. Many web sites are offering prescription drugs prescribed by an unseen on-line doctor or without even a prescription. Many of these sites give no indication of their location or the individuals operating it, raising concerns about the legitimacy of the web site. Because of their slick packaging, many of these sites fool consumers into believing that they are legitimate providers, when in fact they are unlicensed to dispense drugs or do so in ways that violate state or federal laws.

I want to stamp out these bad actors. We need to encourage strong enforcement action by the States and the Federal government of the laws already on the books. Some states, such as Kansas, take action against on-line pharmacies and web doctors who have violated the laws of their respective states. Several other States are beginning to follow the lead of Kansas to shut down these sites. We applaud their efforts.

Additionally, I believe that the Federal and State governments must work together to address illegal or unscrupulous practices by on-line pharmacies. I suggest the establishment of a joint Federal-State task force to examine whether current laws and regulations are adequate to protect purchasers of drugs on the Internet -- and if not to recommend changes to those laws.

At the same time, it is important that we do not over react by piling layers of new regulations on to an emerging marketplace - one that provides great benefits to consumers. I am excited about the promise this new marketplace brings to working families, the disabled, and senior citizens across the country. Let's continue our oversight of this new marketplace, to ensure that its promise is fulfilled in a way that also protects on-line purchasers. I would like to thank all of our witnesses for joining us here today."