Amazon under FDA scrutiny over sales of ‘unapproved’ drugs: FT
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The U.S. Food and Drug Administration (FDA) has threatened to sue Amazon (NASDAQ:AMZN) over the sales of "unapproved" drugs on its e-commerce site, The Financial Times reported Wednesday.
Citing a letter from the FDA to Amazon (AMZN) CEO Andy Jassy, the paper said that the issue relates to the sales of drugs purported to treat the skin condition molluscum contagiosum, for which there are no approved over-the-counter medications.
The agency accused Amazon (AMZN) of distributing four such products "directly to individual U.S. consumers on behalf of third [party sellers]."
The FDA raised concerns that the drugs were being promoted for use by children and added that the company must address the issue or prepare to face "legal action."
According to FT, the letter marks the third such warning issued against the Seattle, Washington-based company over the past 12 months.
Additionally, the agency has sent multiple warning letters over the past several years against third-party sellers on Amazon.com and Amazon "Associates," citing violations of its rules related to product sales.
The company requires "all products offered in our store to comply with applicable laws, regulations and Amazon policies, and we develop innovative tools to prevent unsafe products from being listed," Amazon (AMZN) said.
The setback comes at a time when the tech giant is rapidly expanding its healthcare offerings. In February, the company acquired One Medical, a membership-based primary care platform, for nearly $3.9B.

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