Govt Amends UCPMP 2024: CEOs Must Disclose Marketing Expenses, Free Sample Pricing Norms Finalized

The amendment, dated September 1, 2025, was notified after industry sought simplification of reporting requirements.

“Industry has represented that the existing form for disclosure of monthly marketing expenditure entails significant administrative burden in terms of duplication of efforts and compliance for industry and has sought, with a view to promote Ease of Doing Business, simplification of the reporting form and requirements through submission to respective industry associations and the recording of the price for free samples as the average price charged to the stockist or immediate customer or the average price paid for the purchase of medicines for the same dosage form and strength on annual basis, " the Department noted.

Considering the above, in pursuance of clause 14.1 of the Code, the Department issued the following amendments to the Code.

Key Amendments

1. Valuation of Free Samples (Clause 5.1(g))

A new sub-clause clarifies:

“(i) in case the company is the manufacturer of such samples, the samples should be valued on a per unit basis, i.e. per tablet/capsule/vial/gram/ml etc., and its value should be the price charged to the stockist or immediate customer on per unit basis for the same dosage form and strength; and

(ii) in case the company has purchased such samples from another supplier, the purchase price should be used for determining the monetary value of free samples under this Code. The price of free samples should be recorded as the average price charged to the stockist or immediate customer, or the average price paid for the purchase of medicines for the same dosage form and strength on annual basis.”

2. Complaints and Reporting (Clauses 9.5 and 11.10)

In Clause 9.5, the words “Such details should also be uploaded on the UCPMP portal of the Department of Pharmaceuticals.” have been omitted.

In Clause 11.10, the words “and the Department of Pharmaceuticals” have been omitted.

This effectively removes the requirement for companies to upload complaint details to the DoP’s portal. However, associations must continue to display such complaint details on their websites for a period of five years.

3. CEO Responsibility and Disclosure (Clause 14.4)

The amendment strengthens accountability by making the CEO directly responsible:

“The Chief Executive Officer of the company shall be responsible for adherence to this Code. Disclosure of marketing expenditure in the form set out in the Annexure shall be submitted by the executive head of the company within two months of the end of every financial year or be uploaded on the website of the Association of which the company is a member. In case the company is a member of more than one Association, it shall, at its option, submit the disclosure made in the said form to any one Association of which it is a member, while informing the other Association(s) of having done so. Thereafter, the company shall continue to disclose its expenditure to the same Association to which it first made the disclosure, unless—

(i) the company ceases to be a member of that Association; and

(ii) the company decides to start disclosing to another Association of which it is a member, under due intimation of such decision to the Department of Pharmaceuticals and the first-mentioned Association.

In case the company is not a member of any such body, the disclosure shall be made on the UCPMP portal of the Department of Pharmaceuticals.”

4. Data Retention (Clause 14.5)

Associations have been directed to ensure secure storage of disclosures:

“The Associations shall have a system in place to ensure that the data disclosed by its members is stored securely and is adequately protected. Such data shall be retained for a minimum period of five years, or for such longer period as may be necessary for the purpose of facilitating inquiry into or decision on any complaint made or proceeding instituted before the Ethics Committee for Pharma Marketing Practices, the Apex Committee for Pharma Marketing Practices or any court or other authority or as such committee, court or authority may direct for such purpose. The Associations shall also have a system in place to share such data or information, without affecting the integrity of the same in any manner, on being required to do so by such committee, court or authority for the purposes of such inquiry or decision.”

5. New Annexure Form

The circular replaces the earlier disclosure forms with a new Annexure requiring detailed particulars of free samples, educational programmes, and methodology used for expenditure calculation.

Extension of Deadline for FY 2024–25

The DoP has granted additional time for disclosures:

“For the financial year 2024-25, the Department hereby extends the time limit for submission of disclosure of the particulars of marketing expenditure and declaration of compliance with the Code… by a further period of one month beyond 31.8.2025, i.e., till 30.9.2025.”

Balancing Ease of Business with Transparency

By clarifying sample valuation, shifting reporting to associations, and removing duplicative portal requirements, the DoP has responded to industry’s compliance concerns while retaining safeguards for transparency. The updated UCPMP Code, effective from September 1, 2025, provides a streamlined framework for disclosure, oversight, and accountability.