OBJECTIVE: The concept of e-commerce on pharmaceuticals is a controversial issue affecting both U.S.A and Europe. This report will evaluate the benefits and disadvantages of online pharmacies for consumers, pharmacists, and the pharmaceutical industry. METHODS: The legal background to online pharmacies in Europe will be examined in accordance with the differential pricing and reimbursement issues of some selected European countries. The reasons for this phenomenon are going to be analyzed. The easy access, time saving and privacy are the main explanations, but what about prices? Is internet an indirect way of parallel trade in pharmaceuticals? What precautions should be taken for both patients and companies of e-commerce in pharmaceuticals? RESULTS: Issues of potential risks to public health because of handling outside regulated distribution channels. Additionally, lack of prescription in accordance with arrival without instructions for proper use or in an incorrect dose might put the health of the patients in danger. CONCLUSION: The phenomenon of e-commerce on pharmaceuticals is a "headache" issue for all the involved parties in the medical world, the doctors who can't control their patients medicines, pharmacists who lose market share, patients who take medicines which in many cases might cause them side effects because they don't have the permission of the doctor and last but not least pharmaceutical companies which they can't control their stocks since patients from different countries order medicines via internet with lower prices than they are being sold in their country.