The University of Richmond’s Journal of Global Law & Business is proud to announce its annual Corruption Issue. In this series of posts, each co-authored by a UR law student and Professor Andy Spalding, we’ll introduce this year’s articles and invite submissions for next year’s issue.
In the wake of Brazil’s “Mensalo” scandal and Petrobras investigation, and the alleged corruption in Sochi, is Brazil’s Clean Companies Law enough to stop rumors of Olympic corruption?
Both the FCPA and the Clean Companies Law aim to increase transparency. The Clean Companies Act not only mirrors much of the FCPA, but also goes beyond the current iteration of the FCPA by holding businesses to stricter standards. The real test, however, will be in the law’s implementation.
In their article, The Penumbra of the United States Foreign Corrupt Practices Act: Brazil’s Clean Companies Act and the Implications for the Pharmaceutical Industry (available from ssrn here), Beverly Earle and Anita Cava review Brazil’s Clean Companies Act through the lens of its domestic effect on the pharmaceutical industry. They focus on the law’s goal of shedding light on gifts provided to prescribing physicians and healthcare providers.
While Earle and Cava draw similarities to the FCPA, it should be noted that another comparison to the Clean Companies Act in this regard would be the United States’ 2010 Physician Payments Sunshine Act. Both are recently passed pieces of legislation aimed at exposing potential conflicts of interest that arise when health care providers receive gifts from manufacturers of pharmaceuticals or medical devices.
If Brazil wants to make sure its image remains clean, it may do well to pay attention to the successes and failures of the implementation of both the FCPA and the Physician Payments Sunshine Act. Successful implementation of the Clean Companies Law prior to 2016 will go a long way toward heading off the damaging corruption rumors that have attended the more recent Olympics.
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The Richmond Journal of Global Law & Business is now accepting articles for publication in its annual bribery and corruption survey. We prefer mid-length articles (around 12,000 words, with a maximum of 18,000 words, including footnotes). If you would like to submit an article for consideration, or discuss the possibility, please contact Chris Rohde here. Articles will be considered through February 15, 2015.
Shaun Frieman is a third-year student at the University of Richmond School of Law, and Managing Editor of the Journal of Global Law & Business.
Andy Spalding is Senior Editor of the FCPA Blog and Assistant Professor at the University of Richmond School of Law.