The Vermont Office of the Attorney General (AG’s Office) recently filed and posted on its website Assurances of Discontinuance executed by 25 manufacturers settling violations of Vermont’s Prescribed Products Gift Ban and Disclosure Law (Law). According to the Law, manufacturers of prescription drugs, biological products, and medical devices are required to disclose to the AG's Office the value, nature, purpose, and recipient of any allowable expenditure or permitted gift. Manufacturers are also required to submit samples disclosure reports that include the product, recipient, number of units, dosage, and other information for all samples provided to Vermont health care providers. Disclosure reports are due to the AG’s Office by April 1st of each year. According to the Law, each failure to disclose constitutes a separate violation, which may result in a civil penalty of no more than $10,000 per violation.
On September 23, 2013, the AG’s Office issued a press release stating that it has settled with 25 manufacturers for violations of the Law. The press release summarizes that 24 of the manufacturers failed to file disclosures entirely, and paid a total of $25,250 to the State in fees; one manufacturer paid $36,000 in civil penalties to settle gift-ban violations. The press release notes that these violations of the Law were all self-reported. According to the press release, Vermont Attorney General William H. Sorrell stated, “Similarly situated manufacturers that are less forthright and cooperative will not receive such favorable treatment.”
Please see the AG’s Office website to view copies of the Assurances of Discontinuance.