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FTC May Go After Pharma Bundling, Rebates, Patent Processes With Reactivation of Section 5

 
• By Brenda Sandburg

Agency restores long dormant enforcement of section of FTC Act prohibiting businesses from using ‘unfair methods of competition,’ expanding types of corporate behavior subject to enforcement action.

FTC building
FTC issues new policy statement on pursuing unfair methods of competition • Source: Shutterstock

Biopharmaceutical companies could face new enforcement actions by the US Federal Trade Commission now that the agency is pursuing violations of Section 5 of the FTC Act. The section targets “unfair methods of competition,” which encompass a broader range of conduct than the FTC may pursue under the Sherman and Clayton Acts.

On 10 November, the FTC issued a new policy statement on the scope of unfair methods of competition under Section 5. The 16-page statement specifies factors the Commission will...

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