SC notice to Centre on plea against unethical marketing practices by pharma companies

The Supreme Court on Friday issued notice to the Centre on a plea to issue guidelines to control and regulate unethical marketing practices by pharmaceutical companies, resulting in the excessive prescription of high-priced drugs affecting the right to health and life of the citizens.

A bench of Justices D Y Chandrachud and Surya Kant sought a response from the Centre after hearing submissions by senior advocate Sanjay Parikh, who appeared for petitioner Federation of Medical, Sales Representatives Association of India and others.

The plea alleged unethical marketing practices by pharmaceutical companies in their dealings with healthcare professionals. It made the Department of Pharmaceuticals, Ministry of Law and Justice, and the Ministry of Health and Family Welfare as parties in the petition.

The plea contended that it is high time that the lacuna in ensuring the right to health is urgently filled up by appropriate legislation.

It pointed out that there were abundant examples that showed how corruption in the pharmaceutical sector endangered positive health outcomes and put patients’ health at risk.

“As violations of this kind have become a recurring phenomenon and are progressively becoming more pervasive, the petitioners pray that a Statutory Code of ethical marketing for the pharmaceutical industry, with penal consequences, be established to curb such practices for the enforcement of the Fundamental Right to Health of the people of India," the plea said.

The plea argued that due to the voluntary nature of the existing code, unethical practices continued to increase and have also surfaced during the COVID-19 times.

“By contrast, numerous countries across the world, including the United States, France, Germany, Hungary, Italy, UK, Venezuela, Argentine, Russia, China, Hong Kong, Singapore, Australia, South Korea, Philippines, Malaysia and Taiwan, have enacted stringent laws to curb corruption in the pharmaceutical sector,” it pointed out.

In a judgement on February 22, the Supreme Court had expressed its concern over pharmaceutical companies manipulating doctors' prescription by gifts such as gold coins, fridges and LCD TVs to funding international trips for vacations or to attend medical conferences, in lieu of suggesting drugs manufactured by them.

It had then held pharmaceutical companies’ gifting freebies to doctors, etc is clearly “prohibited by law”, and they cannot claim a deduction for it.

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