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Anzal’s Summary of Case Study 3

C3: AUTH/2682/11/13 – Anonymous v Merck Serono Provision of hospitality
CASE SUMMARY

  • An anonymous complainant submitted a complaint about Merck Serono’s provision of hospitality during two international conferences, one in Boston and the other in London.

  • Merck Serono flew delegates premium class to the conferences, which is contrary to the Code that requires only economy class to be offered to delegates.

  • The Panel noted that perception and cost were important factors when deciding whether premium economy flights were acceptable, and that it was unlikely that the payment of a significantly more expensive fare than economy would ever be acceptable under the Code.

  • Merck Serono could not provide the actual cost of economy flights for the specific dates travelled, so it was not possible to determine whether the premium economy class tickets and world traveller plus tickets purchased were significantly more expensive than the corresponding economy flights.

  • The provision of a class of flight other than economy was contrary to the Code, and a breach was ruled.

  • The subsistence provided to the Merck Serono delegation during the American Society for Reproductive Medicine conference was not unreasonable, and no breach of the Code was ruled.

  • The cost of subsistence provided to health professionals during the Tower of London dinner was such that it was contrary to the Code, and a breach was ruled.

  • The complainant had not proved on the balance of probabilities that Merck Serono had hosted lavish drinks parties during the conferences, and no breach of the Code was ruled.

Clauses:

Clause 19.1 of the ABPI Code of Practice was breached as Merck Serono provided extravagant levels of hospitality to UK health professionals, including flying delegates premium class to the ASRM conference in Boston and providing lavish dinners and drinks parties in relation to this congress and a Thames riverboat cruise and gala dinner at the Tower of London in relation to the ESHRE conference.
 
 
Learning points:

· Follow the guidelines and regulations set forth by the Code. In this case, the Code required companies to only offer or provide economy air travel to delegates sponsored to attend meetings. The perception and cost are important factors when deciding whether premium economy flights are acceptable.

· Be mindful of the impression created by activities, especially in relation to the provision of subsistence in a public restaurant. It is important for a company to maintain high standards.

· Maintain proper documentation and evidence of expenses. It is crucial to provide the actual cost of economy flights for the specific dates traveled when requested.

· Provide accurate information and avoid making false claims. The complainant needs to prove the claims made, and the company needs to be transparent about the activities it has undertaken.

· Be aware of the guidelines and regulations set forth by the relevant professional bodies and organizations. For example, the American Society for Reproductive Medicine (ASRM) conference required companies to adhere to their specific rules and regulations.

· Ensure that all employees are aware of the company’s policies and guidelines, especially concerning expenses, hospitality, and subsistence provided during conferences.