Identifier
Created
Classification
Origin
09TOKYO411
2009-02-23 09:05:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Tokyo
Cable title:
JAPANESE GOVERNMENT TO REVIEW PROPOSED BAN ON
how-toVZCZCXRO9566 PP RUEHFK RUEHKSO RUEHNAG RUEHNH DE RUEHKO #0411 0540905 ZNR UUUUU ZZH P 230905Z FEB 09 FM AMEMBASSY TOKYO TO RUEHC/SECSTATE WASHDC PRIORITY 0987 INFO RUEHFK/AMCONSUL FUKUOKA PRIORITY 2577 RUEHNAG/AMCONSUL NAGOYA PRIORITY 0399 RUEHNH/AMCONSUL NAHA PRIORITY 4922 RUEHOK/AMCONSUL OSAKA KOBE PRIORITY 6366 RUEHKSO/AMCONSUL SAPPORO PRIORITY 3128 RUCPDOC/DEPT OF COMMERCE WASHINGTON DC PRIORITY RUEAUSA/DEPT OF HHS WASHINGTON DC PRIORITY
UNCLAS TOKYO 000411
SENSITIVE
SIPDIS
DEPT FOR EAP/J AND EEB/TPP AND EEB/CIP
DEPT PASS TO USTR FOR CUTLER AND BEEMAN
E.O. 12958: N/A
TAGS: ETRD EINV TBIO KSTH JA
SUBJECT: JAPANESE GOVERNMENT TO REVIEW PROPOSED BAN ON
ONLINE OTC DRUG SALES
Sensitive But Unclassified. Please Handle Accordingly.
UNCLAS TOKYO 000411
SENSITIVE
SIPDIS
DEPT FOR EAP/J AND EEB/TPP AND EEB/CIP
DEPT PASS TO USTR FOR CUTLER AND BEEMAN
E.O. 12958: N/A
TAGS: ETRD EINV TBIO KSTH JA
SUBJECT: JAPANESE GOVERNMENT TO REVIEW PROPOSED BAN ON
ONLINE OTC DRUG SALES
Sensitive But Unclassified. Please Handle Accordingly.
1. (SBU) Minister Yoichi Masuzoe has ordered a review of the
Ministry of Health, Labor, and Welfare (MHLW)'s February 6
ordinance that would ban Internet and mail order sales of
most over-the-counter (OTC) drugs. The review was ordered
within hours of the provision's announcement following
complaints it would seriously inconvenience consumers,
particularly the elderly and those in rural areas. Minister
Masuzoe has convened a panel of 19 members, including
stakeholders who support and oppose the measure, to discuss
the merits of the ban. The panel is due to meet by the end
of February.
2. (SBU) The ordinance, as originally issued, would require
nearly all OTC drugs to be sold at face-to-face retail
locations, e.g., pharmacies, as a means of ensuring
consumers' safety. Certain medicines with low health risks
could continue to be sold online and by mail order. The
measure would come into force in June 2009 when the revised
Pharmaceutical Affairs Law is slated to take effect. Under
the revised law, nonprescription medicines will be classified
into three groups based on the risk of side effects. Mail
order and online sales will be allowed only for those Class
Three items deemed to have the lowest risk of side effects.
3. (SBU) Since a draft of the measure was released for
public comment last fall, those for and against the ban have
remained far apart. The Japan Pharmacists' Association and
organizations representing those who have suffered from drug
side effects insist face-to-face sales are essential in
ensuring consumer safety. However, some observers note
online competition has hurt pharmacy sales.
4. (SBU) Online retailers argue the ban creates difficulties
for those who are not able to go to pharmacies. Internet
retailer Rakuten along with Yahoo have submitted 300,000
signatures of those supporting mail order and online sales.
Internet economy advocates also criticized the move to
restrict this type of transactions, saying direct action
would be better for addressing consumer safety concerns. The
GOJ's Council for the Promotion of Regulatory Reform also
opposed the ban, asserting it would pose problems for
consumers. The association of pharmaceutical companies
dealing in traditional herbal medicines submitted comments
opposing the ordinance as well. Chinese herbal medicines are
traditionally sold via mail order, but will be labeled Class
Two under the ordinance.
5. (U) Online sales of OTC drugs amounted to an estimated
USD 68 billion in 2004, according to the Japan Online Drug
Association. Including catalog and mail order, sales were
estimated to total USD 289 million.
ZUMWALT
SENSITIVE
SIPDIS
DEPT FOR EAP/J AND EEB/TPP AND EEB/CIP
DEPT PASS TO USTR FOR CUTLER AND BEEMAN
E.O. 12958: N/A
TAGS: ETRD EINV TBIO KSTH JA
SUBJECT: JAPANESE GOVERNMENT TO REVIEW PROPOSED BAN ON
ONLINE OTC DRUG SALES
Sensitive But Unclassified. Please Handle Accordingly.
1. (SBU) Minister Yoichi Masuzoe has ordered a review of the
Ministry of Health, Labor, and Welfare (MHLW)'s February 6
ordinance that would ban Internet and mail order sales of
most over-the-counter (OTC) drugs. The review was ordered
within hours of the provision's announcement following
complaints it would seriously inconvenience consumers,
particularly the elderly and those in rural areas. Minister
Masuzoe has convened a panel of 19 members, including
stakeholders who support and oppose the measure, to discuss
the merits of the ban. The panel is due to meet by the end
of February.
2. (SBU) The ordinance, as originally issued, would require
nearly all OTC drugs to be sold at face-to-face retail
locations, e.g., pharmacies, as a means of ensuring
consumers' safety. Certain medicines with low health risks
could continue to be sold online and by mail order. The
measure would come into force in June 2009 when the revised
Pharmaceutical Affairs Law is slated to take effect. Under
the revised law, nonprescription medicines will be classified
into three groups based on the risk of side effects. Mail
order and online sales will be allowed only for those Class
Three items deemed to have the lowest risk of side effects.
3. (SBU) Since a draft of the measure was released for
public comment last fall, those for and against the ban have
remained far apart. The Japan Pharmacists' Association and
organizations representing those who have suffered from drug
side effects insist face-to-face sales are essential in
ensuring consumer safety. However, some observers note
online competition has hurt pharmacy sales.
4. (SBU) Online retailers argue the ban creates difficulties
for those who are not able to go to pharmacies. Internet
retailer Rakuten along with Yahoo have submitted 300,000
signatures of those supporting mail order and online sales.
Internet economy advocates also criticized the move to
restrict this type of transactions, saying direct action
would be better for addressing consumer safety concerns. The
GOJ's Council for the Promotion of Regulatory Reform also
opposed the ban, asserting it would pose problems for
consumers. The association of pharmaceutical companies
dealing in traditional herbal medicines submitted comments
opposing the ordinance as well. Chinese herbal medicines are
traditionally sold via mail order, but will be labeled Class
Two under the ordinance.
5. (U) Online sales of OTC drugs amounted to an estimated
USD 68 billion in 2004, according to the Japan Online Drug
Association. Including catalog and mail order, sales were
estimated to total USD 289 million.
ZUMWALT