96% of online pharmacies are run illegally, according to a U.S. report

The U.S. Trade Representative’s annual report revealed that many of the world’s online pharmacies are selling medicines without prescriptions and safety warnings.

Nearly all of the world’s 35,000 online pharmacies are being run illegally and consumers who use them risk getting ineffective or dangerous drugs, according to the U.S. Trade Representative’s annual report on “notorious markets.” The report also singled out 19 countries over concerns about counterfeit or pirated products.

The report also named about three dozen online retailers, many of them in China or elsewhere in Asia that it said are allegedly engaged in selling counterfeit products or other illegal activities.

The report says 96% of online pharmacies were found to be violating the law, many operating without a license and selling medicines without prescriptions and safety warnings.

Their websites often look like legitimate e-commerce platforms, often with false claims that they are approved by the Food and Drug Administration, said the report, released Wednesday. The FDA and U.S. Drug Enforcement Administration have both issued warnings about risks of buying prescription medicines from such sources.

It cited a survey by the Alliance for Safe Online Pharmacies’ Global Foundation that found nearly one in four Americans who have used online pharmacies reported having encountered substandard, fake, or harmful medicines.

Last year, federal prosecutors reported that a network of illegal drug sellers based in the U.S., the Dominican Republic, and India had packaged potentially deadly synthetic opioids into pills disguised as common prescription drugs and sold millions of them through fake online drugstores, federal prosecutors said Monday. At least nine people died of narcotics poisoning between August 2023 and June 2024 after consuming the counterfeit pills, the indictment said.

Apart from the risks of using drugs that may contain inert ingredients or those that could cause allergies, the medicines are sometimes made in unsanitary conditions, said the report, which did not give annual statistics for those who may have died or otherwise been harmed.

The USTR’s annual report cited examples from inside the United States, but and also mentioned risks of imported ingredients including fentanyl from China. Many of the illicit online pharmacies are based outside the U.S.

The “Notorious Markets List” did laud progress in fighting counterfeit and pirated goods.

In one case, U.S. authorities, industry groups and the police collaborated in shutting down a Hanoi, Vietnam-based piracy ring, Fmovies, and other related piracy sites, in July and August.

The report said the world’s then-largest pirated movies site had drawn more than 6.7 billion visits from January 2023 to June 2024.

In another Vietnam-linked case, two people operating pirate television platform BestBuyIPTV were convicted and ordered to pay fines and forfeit property.

The report also cited crackdowns on online piracy in Brazil and the United Kingdom and busts of sellers of counterfeit purses, clothing and shoes in Kuwait.

But problems remain with cyberlockers that thwart efforts to restrict piracy of movies and other content and of so-called “bulletproof” internet service providers, or ISPs, that promise people using them leeway for using pirate sites, it said.

One such ISP is Avito, a Russian-based ad platform that allegedly lets sellers advertise counterfeit products.

Baidu Wangpan, a cloud storage service of China’s largest search engine provider, Baidu, was named for allegedly failing to enforce or being slow to act on copyright protection.

The report also pointed to social-commerce site Pinduoduo and to Douyin Mall, a Chinese online platform owned by Tiktok owner ByteDance. It said the shopping platforms have sought to build up protections but that they still host many counterfeit goods.

It also named Shopee, a Singapore-based online and mobile e-commerce site, saying some country-focused platforms serving Southeast Asia and South American had better track records in fighting piracy than others.

IndiaMART, an big business-to-business marketplace in India, still offers a slew of counterfeit products, it said.

While a large share of theft of intellectual property has moved online, the report also highlighted real world locations notorious for selling counterfeit products, including markets in Turkey, bazaars in the United Arab Emirates and Saigon Square Shopping Mall in Vietnam’s Ho Chi Minh City.

The report said Bangkok’s MBK Center, a huge mall of about 2,000 stores, had actively cracked down on counterfeiting, though such products still can be found there.