Legal and Ethical Considerations in Marketing,
Product Safety, and Intellectual Property
Wanda T. Diggs
Professor William Stone
Law, Ethics and Corporate Governance – LEG-500
March 18, 2014
Abstract

The PharmaCARE scenario is a case study based on a real life tragedy. Corporate corruption is alive and well and, as this case proves, unethical corporations will break the law for extra profit. Utilitarian ethics should be considered when in the business of providing consumable products to the public. Unfortunately, there are pharmaceutical corporations operating in the U.S. who are not abiding by the law and who are endangering public safety.
Introduction
This case study involves a pharmaceutical company that violated the intellectual property rights of a foreign nation; violated state compounding regulations, and violated product safety laws. The company established a compounding pharmacy to mass-produce a new drug formulation that executives believed would earn huge profits. The most disturbing aspect of this case is that there was a tremendous loss of life as a result of the company’s decisions. The federal government has granted authority to the Food and Drug Administration (FDA) to ensure drugs are safe for human consumption. Today, the FDA faces obstacles relating to lack of oversight control, funding, and human resources needed to provide adequate oversight over compounding pharmacies. This paper covers a broad-brush of ethical and legal issues relating to the PharmaCARE case study. The aspects of this case provide insight into federal and state law, corporate values, direct-to-consumer advertising, product safety, and intellectual property. Research into these issues uncovered a very similar case in Framingham, Massachusetts, where a compounding pharmacy produced mass quantities of a steroid that contained mold. The federal government can