Anti-Corruption Tips For Health Care Cos. Operating In China

Law360, New York (September 23, 2015, 3:38 PM EDT) -- The health care industry in China is currently under a lot of scrutiny. Multinational companies operating in China now need to navigate both Foreign Corrupt Practices Act requirements and China's domestic anti-corruption measures, requiring increased scrutiny on everything from the collection of prescription information to the drafting of contracts for charitable donations to promotional activities. In a recent case, Mead Johnson Nutrition agreed to pay $12 million to settle the U.S. Securities and Exchange Commission's finding that it violated the FCPA after Mead Johnson funded improper payments through its third-party distributors which then paid Chinese health care professionals to recommend Mead Johnson Nutrition products and share patients' contact information. These acts of participation in promotional activities and illegal collection of patients' information, which are prohibited under the FCPA, are also strictly prohibited under Chinese laws....

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