Therapeutic Goods Amendment (Pharmaceutical Transparency) Bill 2013

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Therapeutic Goods Amendment (Pharmaceutical Transparency) Bill 2013

Introduced into the Senate on 28 February 2013
By: Senator Di Natale

Summary of committee view

1.1        The committee seeks clarification on the potential impact of the bill on the right to freedom of expression (including the right to seek and receive information of a commercial nature) and freedom of association

Overview

1.2        This bill seeks to amend the Therapeutic Goods Act 1989 to create new civil penalty provisions to prohibit pharmaceutical companies from offering certain inducements or payments to medical practitioners. It also requires pharmaceutical companies to report each year about any payments or inducements made to medical practitioners (failure to do so will also be subject to a civil penalty). The civil penalties provide for a maximum penalty of 600 or 1,200 penalty units, or $102,000 or $204,000, that could apply to corporations.

Compatibility with human rights

1.3         The bill is accompanied by a self-contained statement of compatibility. The statement makes no reference to any specific human rights and maintains:

This Bill does not negatively impact on any human rights. Although it places some small constraints on how pharmaceutical companies may compensate doctors, most interactions continue to be allowed under new transparency rules and there are no restrictions on the actions of individuals. These restrictions do not conflict with any of the rights enumerated in the applicable treaties.

1.4        The bill is aimed at addressing the possibility that pharmaceutical companies may exert undue influence on doctors in their choice of prescription medicines. The explanatory memorandum explains that the bill will replace a voluntary industry code with ‘legislation that sets more stringent restrictions on the interactions between pharmaceutical companies and physicians that minimises the opportunity to provide inducements and thereby unduly influence prescribing behaviours.’[1]

1.5        The bill forbids payment for doctors to travel or attend education seminars and scientific conferences domestically and overseas paid for by pharmaceutical companies, bans the sponsorship of educational meetings intended for Australian doctors outside Australia, limits gifts and overly lavish hospitality, and requires full reporting of any fees paid to prescribers outside the company.

Right to health

1.6        There are a number of human rights that are potentially engaged by the bill. The purpose of the bill can be seen as broadly promoting the right of persons to the highest attainable standard of physical and mental health guaranteed by article 12 of the International Covenant on Economic, Social and Cultural Rights (ICESCR) by ensuring that medicines are prescribed solely on the basis of their efficacy and the choice of appropriate medicines is not influenced by extraneous matters or incentives offered by pharmaceutical companies to doctors.

Freedom of expression and freedom of association

1.7        The guarantee of freedom of expression, including the freedom to seek and receive information (as well as to impart it), guaranteed by article 19 of the International Covenant on Civil and Political Rights (ICCPR), applies to commercial information as well as to other forms of information. While corporations as such do not enjoy rights directly under the ICCPR, the freedom of doctors to receive information may be restricted by the bill. Freedom of association guaranteed by article 22 of the ICCPR, which also extends to commercial association for commercial purposes, may also be engaged.

1.8        Restrictions on the right to receive information are permissible under article 19 of the ICCPR, but only if they are:

provided by law and are necessary:

(a) For respect of the rights or reputations of others;

(b) For the protection of national security or of public order (ordre public), or of public health or morals.

1.9        Restrictions on the enjoyment of freedom of association are also permissible if similarly restricted.

1.10      In order to justify restriction on either of these rights, it must be shown that not only does the measure pursue a legitimate goal but that it is a measure rationally related to the achievement of the goal and is a reasonable and proportionate measure overall.

1.11             The committee intends to write to Senator Di Natale to seek clarification on the potential impact of the bill on the right to freedom of expression (including the right to seek and receive information of a commercial nature) and freedom of association.

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