February 29, 2016

• DTC Advertising Bill Introduced
• Advertising/Services May Be on the Table in Oklahoma
• The AAF's Government Affairs Committee to Meet

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DTC Advertising Bill Introduced

Rep. Rosa DeLauro, D-Conn., has introduced legislation that would restrict direct-to-consumer advertising of a new drug in the three years after the drug's approval. The bill would permit theDepartment of Health and Human Services to waive this waiting period in the third year if the drug sponsor submits an application to HHS and the Department finds that DTC advertising of the drug “would have an affirmative value to public health.”

Additionally, this legislation would grant HHS authority to prohibit DTC advertising of the drug after this three-year period if HHS determines that the drug has “significant adverse health effects based on post-approval studies, risk-benefit analyses, adverse event reports, the scientific literature, any clinical or observational studies, or any other appropriate resource.” This bill has no cosponsors and has been referred to the Committee on Energy and Commerce where not action has been scheduled.

By delaying advertising of approved pharmaceuticals, the bill would needlessly, and perhaps dangerously, delay the day that many patients would be allowed to hear information about potentially lifesaving medications.

Rep. DeLauro justifies the bill by stating, "At the end of the day, we should allow informed medical professionals, not advertising executives, to guide our healthcare spending." Because physicians have the ability to prescribe or not prescribe pharmaceutical, they are already guiding healthcare spending. Advertising only has the power to inform patients of available products and prompt them to begin a conversation with their doctor.

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Advertising/Services May Be on the Table in Oklahoma

According to reports out of Oklahoma, some state lawmakers have discussed the possibility of extending the state sales tax to many services, including some advertising services.  As an energy producing state, Oklahoma is facing declining tax revenues because of the drop in oil and gas prices. AAF has provided our local members with arguments and economic data to counter a potential advertising tax.  If and when such a tax is introduced, we will assist those members in educating lawmakers about the many negative consequences of an advertising tax.

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AAF Government Affairs Committee to Meet

The AAF Government Affairs Committee will meet via conference call on Monday, March 14 at 1:00 pm ET (12:00 pm CT, 11:00 am MT, 10:00 am PT).  Any interested AAF member is welcome to call-in.  Contact AAF's Executive Vice President of Government Affairs, Clark Rector at [email protected] or (202) 898-0089 for more information.