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My pharmacy sold a counterfeit medicine, but it was purchased from a licensed wholesaler. Am I liable?

A complete explanation of the regulatory basis, Drew Tang’s recommendations and risk alerts. The original material dates from 2025; read it alongside the latest official requirements.

Original guide, 2025 edition: These FAQs are provided for topic-based reference and have not all been individually checked against current rules. Please confirm fees, personnel, renewal, changes and product requirements against the professional in-depth guide for the relevant licence type and the official requirements in force at the time.

Drug Office, Department of Health Chinese Medicines Board

Q427 · Category I: Renewals, changes and penalties for non-compliance (Q401-Q450)
Yes, you remain responsible. Everyone holding a licence at each stage of the medicine supply chain is responsible for ensuring that the medicines they deal in are genuine. As a retailer, you are responsible for sourcing medicines from reputable and reliable suppliers. Although your supplier is a licensed wholesaler, this does not completely exempt you from responsibility. If you purchase goods at prices far below market rates or obtain medicines through unusual channels, the regulatory authority may consider that you “ought to have known or suspected” that there was a problem with their source. Selling counterfeit medicines is a strict liability offence, and it is often difficult to rely on a defence of lack of knowledge.

📘 Regulatory basis

The Trade Descriptions Ordinance (Cap. 362) prohibits the sale of goods bearing a forged trade mark. The Pharmacy and Poisons Ordinance prohibits the sale of unregistered pharmaceutical products.

📗 Drew Tang's recommendations

It is essential to establish a rigorous supplier qualification and management system. Work only with reputable wholesalers or agents authorised by the original manufacturers. Inspect every incoming batch and check the packaging, labels and batch numbers. Never buy through questionable channels just to save money.

📕 Risk notice

Selling counterfeit medicines is a serious criminal offence. Your pharmacy licence may be revoked, and the person-in-charge may also face imprisonment. Although wholesalers may be held liable, you, as the last safeguard at the retail stage, are also responsible.

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