WASHINGTON -- The Food and Drug Administration says a shipper of Canadian drugs is breaking U.S. law by supplying employees of a U.S. city.

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The FDA says CanaRx puts American customers at risk. The agency says it has no way to be sure that drugs sent from Canada are safe.

A lawyer for the city of Springfield, Mass., said city employees have reported no problems with their medications. He said Canada's drug monitoring is at least as good as America's, and the drugs are often the same but far cheaper in Canada. He said the employees like the program, and federal claims of safety issues are bogus.

An FDA official said the government could have the company prosecuted and the drugs seized, but he said no decision has been made yet.

FDA Commissioner Mark McClellan said the agency is committed to enforcing the law against people "who endanger Americans by profiting from 'buyer beware' schemes to import illegal, unapproved and potentially risky medicines."

The agency warned that there's no guarantee that a consumer could take action against the company if there was an adverse event caused by a drug. In a release, the FDA said companies like CanaRx routinely state that they have no liability or responsibility for adverse consequences of the drugs they provide.

FDA Letter To CanaRX: Nov. 6, 2003 (Adobe Reader Required)

Meanwhile, a federal judge in Oklahoma has granted a request by the government to shut down a company that helps customers buy prescription medications from Canada.

The company operates as Rx Depot and Rx of Canada.

The decision could affect cities and states nationwide that are considering allowing employees to import drugs to cut rising prescription costs.

It's estimated that up to 2 million Americans buy Canadian drugs through the Internet, storefront operations or by crossing the border.

The judge wrote that the defendants are able to offer cheaper prices only because they facilitate illegal activity. She added that Congress is the best forum for weighing the prescription-drug importation issue.

When contacted at his home in Oklahoma, Rx Depot owner Carl Moore told WRTV in Indianapolis that the ruling will have its intended effect, but it won't stop people seeking lower drug prices.

"We're disappointed but respectful of the law, so we going to comply with the judges ruling to shut down all of our stores and appeal to the next level," Moore said. "It's a precedent-setting rule. They have a ruling from a court of law and they will be able to stop all of them."