Consumers should have greater awareness of drug companies dealings with doctors under a proposed Australian Competition and Consumer Commission authorisation* decision on an industry code of conduct.

"The code would govern the marketing activities of companies promoting prescription medicines to doctors", ACCC Chairman, Professor Allan Fels, said today. "It has been developed by Medicine Australia, the national association representing the industry.

"Given community concern about drug marketing, the ACCC proposes to grant authorisation subject to:

  • the code being amended to require drug companies make public (on Medicines Australia's website www.medicinesaustralia.com.au) all instances where the companies propose to provide sponsorship, travel, accommodation and similar promotional benefits to doctors before the benefits are provided. Such information is likely to assist in ensuring that benefits are not provided which might affect doctors’ prescribing habits
  • Medicines Australia publishing full details of all breaches of the code on its website.

"The ACCC acknowledges recent improvements to the code but believes the conditions will improve the code's ability to prevent drug companies' marketing activities inappropriately influencing doctors' prescribing decisions.

"The ACCC proposes to authorise the code for three years. This will allow the ACCC to assess how effective self-regulation has been in addressing consumer concerns about the drug companies/doctors". The code 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 and entertainment.

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

The ACCC will now consult interested parties about its draft decision. Medicines Australia's Code of Conduct relates to prescription medicines, which were largely unaffected by the recent recall of Pan Pharmaceuticals products.