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Designing Events Pharmaceutical Newsletter |
California
Marketing Compliance Law
Many of you may
have heard of the new law in California, the
California Marketing Compliance Law (CMCL), that
focuses on the marketing practices of
pharmaceutical companies and the controversy
that it has caused in the drug industry. Even
though the law went into effect almost a year
ago many meeting planners are still unsure about
what the law really is and how it affects them.
Why?
In September 2004, a bill was signed that added
a new section to the California Health and
Safety Code – now known as CMCL. The goal of
CMCL is “by limiting marketing practices to
exclude inappropriate marketing or promotional
activities ... the bill will have the effect of
lowering prescription drug costs and easing
public concerns about conflicts of interest
between doctors and drug company sales
representatives.” SB 1765 Bill Analysis (April
12, 2004).
How?
CMCL mandates that drug companies develop
Comprehensive Compliance Programs (CCPs) in
accordance with the Office of Inspector
General’s pharmaceutical and marketing
guidelines. The CCPs must include specific
guidelines on annual spending for gifts,
promotional items and materials and marketing
activities, including any activities at medical
conferences that target California doctors.
This not only includes companies headquartered
in California, but any company that does
business in California.
What Now?
While there is still much debate over many
aspects of the law including the effective date,
how to implement the law and how to comply with
it, most companies are erring on the
conservative side. There has already been a
decline on spending on conference giveaways – no
more expensive gifts or trips.
Companies are also being cautious at national
conferences where California doctors are in
attendance. The law is not clear on how it
applies in this situation and how it applies to
exhibitors, but experts agree that you should
not assume that the law does not apply if you
are not actually in California. If you are
exhibiting at a national conference, a safe bet
is to find out how many California doctors are
in attendance at a national conference and
assume that each one will receive one of your
giveaways. That cost should be built into your
budget for annual per-physician spending in
California.
If you are planning a conference where
California doctors will be in attendance, you
can help your exhibitors comply with the new law
by providing projected attendee demographic data
before the conference, actual data shortly after
the conference and use data-tracking on attendee
name badges. Be sure that you are informed about
the new law and pass that knowledge onto your
exhibitors.
Coming to a State Near You
Do you still think this law does not apply to
you? Several states including Maine, Vermont,
Nevada, New Mexico, Minnesota, West Virginia,
and Washington D.C. are in the process of
adopting similar legislation. So watch out – it
could be affecting you very soon!
More Information
Visit the California state website to read the
entire CMCL: http://www.leginfo.ca.gov/cgi-bin/displaycode?section=hsc&group=119001-120000&file=119400-119402
Read the Office of Inspector General’s
pharmaceutical and marketing guidelines: http://oig.hhs.gov/publications/docs/press/2003/pharmguidancerelease.pdf