DoctorNow’s Former CEO’s Conviction Upheld for Advertising Prescription Drugs as “BEST Medicines”
Company and former CEO each have 3 million won fine sentences suspended
"Prescription drug advertising applies even without a profit motive"
Jang Jiho, former CEO of DoctorNow, and the company that operates the app have been found guilty in a case over advertising certain prescription drugs as “BEST medicines” on a telemedicine app.
According to legal sources on November 8, the Supreme Court’s Second Division, with Justice Oh Gyeong-mi presiding, upheld the lower court ruling that suspended the pronouncement of a fine of 3 million won each for Jang and DoctorNow, who were indicted on charges of violating the Pharmaceutical Affairs Act. A suspended pronouncement of sentence means that guilt is acknowledged but the sentence is not pronounced; if the defendant meets certain conditions for two years, the sentence itself is extinguished.
Jang was indicted on charges of selecting certain prescription drugs on the DoctorNow app and disclosing their effects, prices and user reviews from May 10 to June 22, 2022. At the time, DoctorNow featured prescription drugs for conditions including skin problems and acne, hair loss, and weight loss as “BEST medicines” under the “Get the Prescription You Want” menu. Users could add the drugs to their cart and request a prescription, which they could obtain after a telemedicine consultation with a doctor. Prosecutors determined that the service constituted advertising prescription drugs, which is prohibited under the Pharmaceutical Affairs Act, and brought Jang and the company to trial.
The first trial court ruled that the service went beyond simply providing information and constituted advertising prescription drugs. It found that patients were encouraged to select drugs before seeing a doctor, and that labeling drugs selected based on the number of clicks as “BEST” could lead users to mistakenly believe they were superior. The court also cited the fact that the featured drugs were prescribed far more often than others. However, it suspended the pronouncement of sentence, saying the period of the offense was short and there was no evidence that the defendants had gained financial benefits. The second trial court also upheld the first-instance ruling, finding that advertising prescription drugs continued even after DoctorNow changed “BEST medicines” to “Most Viewed Medicines” on June 9, 2022.
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The Supreme Court also found no error in the lower courts’ rulings and dismissed the appeal. “Under the Pharmaceutical Affairs Act, advertising means making the names and effects of prescription drugs known to an unspecified number of people,” the Supreme Court said, adding that “a profit motive or purpose is not required.”
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