What are arm's length arrangements?

It is possible for a company to sponsor material produced by an independent organisation which mentions its own products and not be liable under the Code for its contents, but only if, among other things, there has been a strictly arm’s length arrangement between the parties.

In practical terms, the arrangements must be such that there can be no possibility that the pharmaceutical company has been able to exert any influence or control over the final content of the material.

Factors which might mean there had not been a strictly arm’s length arrangement would include, but not be restricted to:

• Initiation of the material, or the concept for it, by the pharmaceutical company
• Awareness by the company prior to funding that the material would mainly discuss the company’s medicine and/or positively position it above other treatments
• Influence from the pharmaceutical company on the content/balance/scope of the material. (Note: Correction of factual inaccuracies alone is not enough to compromise an arms-length arrangement, so long as the company is attempting to correct all factual inaccuracies in the material at issue)
• Choice and/or direct payment of the authors by the pharmaceutical company
• Influence from the pharmaceutical company on the list of persons to whom the material is sent
• Receipt by the pharmaceutical company of a benefit in return for the funding, for example, detailed reports from the organisation. (Note: There is a difference between undertaking due diligence to ensure that funds are used for the intended purpose versus requiring detailed reports which contain analytical data such as traffic to the website.)

Whether a pharmaceutical company was responsible under the Code for the content of sponsored material would depend on the arrangement between the parties and whether it was strictly arm’s-length. Regardless of the arrangement, companies will be held accountable under the Code for ensuring transparency through the requirement for an adequate declaration of involvement statement.

Companies should remember that use of material for a promotional purpose will mean that material is subject to the requirements of the Code for promotional material.

(Last revised: August 2025)