Animalcare has been found in breach of Clause 18.2 of the NOAH Code of Practice for offering and supplying infusion pumps/equipment in exchange for veterinary practices entering into written contracts for the purchase of a range of its products, including the POM-V Benazecare.

The value of the equipment offered by Animalcare equated with a discount agreed with the veterinary practice, and was applied as medicinal products were purchased. The equipment was supplied on the signing of a contract. The terms of the contract required a particular quantity of medicinal products to be purchased, and if the veterinary practice failed to meet that requirement, there was a liability to pay a pro-rata element of the equipment purchase price.

The Code of Practice Committee was of the view that a piece of equipment was neither 'price' nor 'product' within the meaning of Clause 18.2 of the Code of Practice; and as such amounted to a gift being offered in relation to the sale; or purchase; or prescription of animal medicine. The Committee took into account that Guidance Note 4, paragraph 7, states that the word "gift" includes any pecuniary advantage being offered, with the exception of price or product itself.

To comply with Code of Practice Clause 18.2, the offer or inducement based on price had to be one of cash as rebated discount. If then there were facilities to enable the veterinary practice to use that rebated discount to purchase the equipment from the supplier, that might be acceptable, but there was a necessity for cash as rebated discount to be provided in the first instance.

Full details of the Committee's rulings are available on the NOAH website at www.noah.co.uk/code.

PS: Whilst you're here, take a moment to see our latest job opportunities for vets.