AUTH/3242/9/19 - Anonymous v Bayer

Hospitality provided by affiliate at overseas meeting

  • Received
    02 September 2019
  • Case number
    AUTH/3242/9/19
  • Applicable Code year
    2019
  • Completed
    09 July 2020
  • Breach Clause(s)
  • Sanctions applied
    Undertaking received
  • Additional sanctions
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  • Appeal
    No appeal

Case Summary

An anonymous, contactable individual complained about the hospitality provided by Bayer plc to UK health professionals attending the European Society of Cardiology (ESC) meeting in Paris, 31 August – 4 September 2019.

The complainant stated that on the evening of Sunday, 1 September Bayer UK put on a party, in full view of the public, in the lobby bar of a named Paris hotel where Bayer delegates were staying. The party, which was clearly signposted, was open to anybody including the complainant and other doctors who had been taken to ESC by Bayer. Free alcohol was provided, and the event lasted until at least 2am on 2 September. The complainant provided photographs and two videos which he/she stated clearly showed Bayer UK and UK doctors partying.

The complainant alleged that the party was an entirely social event and beyond the level anybody would pay for themselves. As sponsored doctors should go to ESC sessions in the morning, it seemed wrong for Bayer to put on a late-night party with free alcohol. Many people were hungover the next day and did not go to the ESC. This clearly brought the company and the pharmaceutical industry into disrepute.

The detailed response from Bayer is given below.

The Panel noted Bayer’s submissions that the event was a private internal event for Bayer global staff only, Bayer UK paid nothing in relation to the event nor was it involved in its organisation, it had no prior knowledge or warning of the global event and as it did not take place in the UK and no external UK health professionals were invited, as far as Bayer UK was aware, the event did not fall within the scope of the Code.

The complainant described the event as being clearly signposted and open to him/her and other doctors and stated that the photographs submitted showed Bayer UK and UK doctors dancing. Bayer submitted that during its room assessment of the event, it had identified a UK health professional, whom it had not sponsored, on the dance floor and that none of the UK delegates it had sponsored were there. The Panel, however, noted Bayer’s further submission that a video depicted mainly identifiable Bayer global colleagues and a person believed to be a UK health professional sponsored by Bayer UK standing outside the bar area without a drink talking to a man; it was unclear to the Panel whether this was one of the videos provided by the complainant, allegedly taken around 2am, or a video identified by Bayer during its enquiry into the event. The Panel noted the parties’ differing accounts but considered that, at the very least, there had, on the balance of probabilities, been one UK health professional present on the dance floor at the Bayer global event.

The Panel noted that it was a well-established principle that UK pharmaceutical companies were responsible for the activities of overseas affiliates if such activities came within the scope of the Code eg the provision of hospitality to UK health professionals. That the hospitality was provided to a UK health professional in France did not alter the application of this principle. In the Panel’s view, in the circumstances of this case, the matter in question fell within the scope of the Code and Bayer UK was thus responsible for it.

The Panel disagreed with Bayer’s submission that the ‘Bayer’ signs placed on the entry to the rear bar area where the event was held were to ensure that there was some clarity around the private event. In the Panel’s view, the ‘Bayer’ signs to an event held in the hotel in which Bayer UK sponsored delegates were staying might encourage those health professionals to attend the event. The signs did not make it clear that it was a private, corporate event. In any case, given the presence of health professionals at the hotel, the Panel queried whether it was appropriate to hold a company social event at the public hotel bar.

The Panel noted Bayer’s submission that whilst it had quickly diverted the sponsored UK delegates away from the global social event upon returning to the hotel that evening, a senior Bayer manager saw a UK health professional, who had not been sponsored by Bayer, at the event. According to Bayer, that UK health professional refused to leave the event when asked to do so by the senior Bayer manager. In the Panel’s view, it appeared that at least one UK health professional had attended the event, he/she was seen on the dance floor and had refused to leave and had thereby received inappropriate hospitality.

The Panel considered that it was important for a company to be mindful of the impression created by such activities. The Panel did not know whether the UK health professional had been provided with food or drink but noted that he/she had been seen at a Bayer global internal event that, according to Bayer, was entirely social in nature. Taking all the circumstances into account, the Panel considered that the UK health professional’s attendance at the event was contrary to the requirements of the Code. The Panel considered that the impression given by the UK health professional’s presence at the event, which, from the photographs and video, appeared to have a party atmosphere, was wholly unacceptable. High standards had not been maintained. Breaches of the Code were ruled.

It appeared that Bayer had been badly let down by its global affiliate. There was no evidence before the Panel of whether global was aware of, or had taken any action in relation to, the UK health professional. Bayer UK had quickly diverted its delegates away from the event and had asked the UK health professional present to leave the global event. Nonetheless, it would be helpful if companies had policies and procedures in place to ensure that they were, at the very least, aware of such internal events given the presence of UK health professionals at the hotel.

The Panel considered, however, that attendance at a purely social event constituted excessive hospitality and considered that the arrangements in this case were such as to bring discredit upon the industry. A breach of Clause 2 of the Code was ruled.