CEI Joins ATR’s Coalition Letter in opposition to Banning, Over-Regulating Drug Ads

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Dear Members of Congress,

We, the undersigned organizations, write in opposition to recent efforts to quash direct-to-consumer (DTC) advertising of prescription drugs.

Banning these advertisements outright – or regulating them into oblivion – would crush competition and keep patients in the dark. Consumers do not need government bureaucrats gate-keeping medical information. We urge you to resist these efforts.

The Department of Health and Human Services (HHS) and the U.S. Food and Drug Administration (FDA) have intensified regulation of these ads and have asked Congress for more leeway to do so. Worse, law:trulkers like Sens. Bernie Sanders (I-Vt.), Angus K.in.g (I-Maine), Chris Murphy (D-Conn.), Dick Durbin (D-Ill.), and Jeff Merkley (D-Ore.) have introduced legislation to outright ban pharmaceutical ads.

Direct-to-consumer advertising (DTCA) simply relays information to consumers. Like all ads, they must be truthful and not misleading. Outside of ensuring this basic standard, government bureaucrats have no business deciding what medical information Americans are allowed to see in ads.

DTCA empowers patients to play a meaningful role in their own care.

One poll notes that 55 percent of consumers say they have requested a specific prescription drug from their doctor after seeing an ad. Presumably, for many, this led to life-improving care they otherwise would not have gotten. Far from undermining the patient-doctor relationship, these ads strengthen it by prompting informed conversations.

When patients are aware of treatment options, they are better equipped to advocate for themselves. All without government officials deciding what information they are allowed to see.

Outside of just increasing sales of a specific drug, DTC ads play a key role in informing patients of pertinent medical information, increasing doctor visits and diagnoses, and destigmatizing certain medical conditions.

Unbranded disease awareness campaigns make up 15 percent of DTC spend. Further, 33 percent of adults report looking for health information related to symptoms mentioned in TV ads immediately after viewing. Studies show that “DTC advertising increases the use of both promoted drugs and non-advertised generic competitors through both increased treatment initiation and improved medication adherence.” As shown by researchers from John Hopkins University, Cornell University, University of Pennsylvania, and University of Southern California, drug advertisements also increase doctor visits; in many cases, these visits don’t even result in a prescription.

Shutting these ads down would mean fewer informed patients and more missed chances to catch problems early.

Finally, banning or over-regulating DTCA would decrease market competition, limiting patient options and increasing prices.

Consumers being aware of alternatives supports competitive pricing dynamics, ensuring that no single drug can dominate without facing pricing pressures.

Without DTCA, most advertising activity will happen between pharmaceutical companies and doctors, offices. Notably, only companies with established markets and/or deep financial resources can maintain extensive relationships with doctors’ offices through costly sales efforts (i.e. individual representatives making continuous visits).

Smaller or newer companies/ drugs often lack these resources, relying more heavily on DTCA to reach patients. In this way, advertising can serve as a counterbalance to the influence of incumbents, increasing competition and giving consumers the ability to choose what is best.for them amongst numerous options.

Banning or over-regulating DTCA keeps patients in the dark, limits medical options, and shields large companies from competition. DTCA empowers patients to be involved in their own care, facilitates important conversations with medical professionals, drives treatment uptake, and helps ensure competitive pricing. We, the undersigned organizations, urge lawmakers to defend patients’ right to know.

Signed,

Grover Norquist
President
Americans for Tax Reform

Marty Connors
Former Alabama GOP Chairman
Alabama Center Right Coalition

Saulius “Saul” Anuzis
President
American Association of Senior Citizens

Phil Kerpen
President
American Commitment

Ryan Ellis
President
Center for a Free Economy

Jeffrey Mazzella
President
Center for Individual Freedom

Chuck Muth
President
Citizen Outreach

Jeremy Nighohossian
Senior Fellow and Economist
Competitive Enterprise Institute

James Edwards
Executive Director
Conservatives for Property Rights

Gerard Scimeca
Chairman
Consumer Action for a Strong Economy

Tom Schatz
President
Council for Citizens Against Government Waste

John C. Goodman
President
Goodman Institute for Public Policy Research

Andrew Langer
President
Institute for Liberty

Tom Giovanetti
President
Institute for Policy Innovation (IPI)

Annette Olson
Chief Executive Officer
The John K. MacIver Institute for Public Policy

Charles Sauer
President
Market Institute

Tim Jones
Chairman
Missouri Center-Right Coalition

Brandon Arnold
Executive Vice President
National Taxpayers Union

Daniel J. Erspamer
CEO
Pelican Institute for Public Policy

Lorenzo Montanari
Executive Director
Property Rights Alliance

Paul J. Gessing
President
Rio Grande Foundation

James Erwin
Executive Director
Digital Liberty

James Erwin
Interim Director
Shareholder Advocacy Forum

Kerri Toloczko
Founder and Co-Chair
Southwest Florida Center Right Coalition

James L. Martin
Founder/Chairman
60 Plus Association

Karen Kerrigan
President & CEO
Small Business & Entrepreneurship Council

David Miller
Chairman
Center Right Southwest Ohio

David Williams
President
Taxpayers Protection Alliance

Kent Kaiser, Ph.D.
Executive Director
Trade Alliance to Promote Prosperity

Patrick D. Purtill
Executive Vice President & General Counsel
Unify.US