Amazon ’s acquisition of online pharmacy start - up PillPack puts it in the highly regulated health care market . With respect to personal medical data , it will come under the purview of the Health Insurance Portability and Reform Act ( HIPAA ) . It places firm restrictions on how companies use medical information , prevents the selling of patient data to third parties and the targeting of products based on a consumer ’s medical condition . Amazon may have to wall off the pharmacy business or risk having to ensure its entire e - marketplace must meet federal privacy standards , from data access to password encryption .
Amazon’s purchase of online pharmacy start-up PillPack puts it in the highly regulated health care market. With access to personal medical data, it will come under the purview of the Health Insurance Portability and Accountability Act (HIPAA). It places firm restrictions on how companies use medical information, prevents the selling of patient data to third parties and the targeting of products based on a consumer’s medical condition. Amazon may have to wall off the pharmacy business or face having to ensure its entire e-marketplace operations meet federal privacy standards, from data access to password encryption.