New York and New Jersey Propose New Rules Restricting Sales and Marketing Practices of Pharmaceutical and Medical Device Companies

In the latest example of the growing trend to enact laws aimed at sales and marketing practices in the pharmaceutical and medical device industries, New York and New Jersey have proposed rules that, if enacted, would substantially limit such marketing activities. To date, states such as California, Nevada, and Massachusetts have implemented laws that require drug and device manufacturers to adopt a compliance program and/or a marketing code of conduct that affects payments made to health care professionals (HCPs). Last year, Massachusetts and Vermont were the first states to require drug and device manufactures to publicly disclose payments to HCPs licensed to practice in those states. In a new twist, if the proposed rules are enacted, New York and New Jersey would be the first states to impose restrictions and obligations directly on physicians licensed in those states.

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