Internet: R. v. Standard 304 Ltd

Website advertising can be illegal in New Zealand even if the business intends to target consumers overseas.

A Hamilton business ran foul of New Zealand legislation governing medical advertisements even though it operated through a Fiji conduit supplying prescription medicines to overseas buyers.

The Court of Appeal was told that the Ministry of Health prosecuted a Mr Wallace Waugh for operating an internet website selling medicines.  He consolidated orders received, getting an Auckland pharmaceutical wholesaler called ZZ Pharmacy to ship the bulk order to Fiji.  Mr Waugh’s son ran the Fiji operation, parcelling individual orders off to customers.

The Medicines Act strictly controls the content of medical advertisements in New Zealand.  Mr Waugh argued he had not breached these rules since his customers were overseas.  The Court of Appeal disagreed.   Consumers in New Zealand could access the website.  Nothing prevented New Zealand customers placing orders.

R. v. Standard 304 Ltd – Court of Appeal (18.12.08)

12.08.001