ACCC proposes to re-authorise code of conduct governing drug companies' dealings with doctors

The Australian Competition and Consumer Commission is proposing to authorise* for three years a new edition of the code governing drug companies' dealings with doctors.

"The code governs the activities of pharmaceutical companies when they promote prescription medicines to doctors", ACCC Chairman, Mr Graeme Samuel, said today. "It has been developed by Medicines Australia, the national association representing the industry".

The code regulates advertising of prescription drugs to the medical profession. Advertising to consumers of prescription drugs is prohibited by the Therapeutic Goods Administration.

The code also regulates matters such as drug company sponsorship of medical conferences; the payment of travel and accommodation expenses of doctors attending such conferences; and the provision of other forms of hospitality.

"The ACCC considers that the new edition of the code contains some improvements, but remains concerned that it is not always effective in actually regulating drug companies conduct. It is proposing a condition to improve the level of transparency around companies provision of benefits to healthcare professionals.

"The ACCC is also aware that a number of interested parties expressed concern with the code and recommended improvements. While the ACCC notes these concerns, its role in assessing applications for authorisation is to consider the arrangements before it. It is not to craft an 'ideal' code".

The ACCC has also granted interim authorisation** to allow the new edition of the code to come into effect. The ACCC will now engage in a further round of public consultation before proceeding to make a final decision. More information regarding the applications and a copy of the draft determination are available by following the Authorising anti-competitive conduct and Authorisations links on the ACCC's website.

Background

* The ACCC has the function, through the authorisation process, of adjudicating on certain anti-competitive practices that would otherwise breach the Trade Practices Act 1974. Authorisation provides immunity from court action, and is granted where the ACCC is satisfied that the practice delivers a net public benefit.

**Interim authorisation allows the parties to engage in the conduct prior to the ACCC finalising its consideration of the substantive merits of the application.