The Internet offers significant benefits to consumers in the form of greater and easier access to detailed information as well as convenient access to healthcare products and services. Consumers are turning to the Internet not just for the healthcare information but also for prescriptions and medical advice. The Malaysian government embarked on building a healthcare information system for the 21st century through its Tele-health Project 2000. The said project aims to keep people healthy through a virtual healthcare information system. One important aspect of healthcare is pharmaceuticals. There are undoubted benefits of online pharmacies such as competitive prices, convenience and privacy. But, there are potential risk involved as well, one of which is false and misleading information. Malaysia has developed some significant laws primarily to protect its consumers. These piecemeal laws have been able to meet the basic objectives of consumer protection as and when required. However, the concept of online pharmacy demands more comprehensive consumer protection. The article examines the legal issues associated with online advertising of pharmaceutical products and suggestions to address these issues.