Econometer: Should the US ban drug advertising to consumers?

Miami Herald

4 hours ago

The U.S. is rare among Western nations because it allows pharmaceutical advertising. But a new effort aims to stop it.
A bill was introduced in Congress recently that would ban pharmaceutical manufacturers from using direct-to-consumer advertising, from TV to social media, to promote their products.
Prescription drug advertising employs a lot of people, directly and indirectly. Billions are spent on advertising each year, employing advertising workers, and 24.4% of ad minutes were for prescription drugs across evening news programs on ABC, CBS, CNN, Fox News, MSNBC and NBC this year through May, according to data from iSpot analyzed by The Wall Street Journal.
Proponents of the bill say advertising drives up the cost of prescription goods. Pharmaceutical trade groups have said advertisements serve public health by increasing disease awareness and educating consumers about treatment options.
Question:Should the U.S. ban drug advertising to consumers?
Economists
Alan Gin, University of San Diego
YES: Advertising is supposed to give consumers more information about products, but are consumers really in a position to make an informed decision about pharmaceuticals? Those decisions are best left to physicians, who probably have more knowledge about the effectiveness of medications. Consumers can be swayed by slick and repetitive ads into wanting products that might not be the best for them. The money spent on the ads will add to the already high price of the drugs.
James Hamilton, UC San Diego
NO: Proponents of a ban argue that ads cause people to request unnecessary drugs. But advertisements helped several of my friends learn about options that they didn't know were available. I'm also concerned any time the government dictates what companies are allowed to talk about. It's appropriate to ensure ads do not make inaccurate claims. And doctors should always say no if patients request a prescription that the doctor does not believe is going to help them.
Caroline Freund, UC San Diego School of Global Policy and Strategy
YES: Advertising specific drugs leads to overprescribing, higher drug and insurance prices, and creates bad incentives, like promoting the most profitable drugs. Because insurance limits consumer costs, more prescription drugs are purchased than needed or used. If the goal is to share important information, industry groups can promote a range of treatments for a condition, leaving discussions of individual products to medical professionals. Drugs also carry risks that are not easily captured in 30 seconds.
Kelly Cunningham, San Diego Institute for Economic Research
NO: Firms do not advertise to raise costs but engage in marketing to inform the public (especially doctors writing prescriptions) of the drug's usefulness. Without marketing, firms would be unable to get information out necessary to make a drug salable in the first place. The drug's value is decided by the marketplace with consumers driving the entire process. Value of advertising is derived from the value consumers place on the drug, not the other way around.
Norm Miller, University of San Diego
NO: While most physicians try to keep up on the latest drug research, some do not, thus the need for public information about new drugs. What should be mandatory in ads are their efficacy, side effects and potential for addiction, using FDA verified stats. Lies and exaggerations should be illegal. It should also be illegal for drug manufacturers to incentivize or pay doctors for prescribing any drug, and physicians that take such gifts should lose their license.
Ray Major, economist
YES: Every ad starts with or ends with "ask your doctor if this drug is right for you." Prescription drug advertisement targets consumers hoping they ask their doctor for a specific brand of drug. Consumers are not qualified to self diagnose symptoms and prescribe drugs to themselves based on information from a commercial. Doctors should be prescribing drugs based on a patients' needs and not influenced by patients who have seen an ad for a prescription drug.
David Ely, San Diego State University
NO: Commercial speech by pharmaceutical companies that is truthful and informative should be protected. A ban on drug advertising goes too far. A better option is enhanced regulation by the FDA and FTC to ensure that the risks and effectiveness of prescription drugs are accurately communicated in advertising to the public. Under a ban, resources would be shifted to increased promotional efforts targeting health care providers so the cost of prescription goods may not decline.
Executives
Gary London, London Moeder Advisors
NO: I am not a big fan of drug advertisements, but unlike cigarette ads, which clearly promoted sickness for generations, at least drugs are lifesaving. The government should not get involved. However, I have never fully understood why pharmaceutical companies promote directly to patients rather than physicians. They complicate medical care. Be that as it may, these advertisements certainly prop up the cable channels, who need the revenue.
Bob Rauch, R.A. Rauch & Associates
YES: The U.S. and New Zealand are the only countries that allow pharmaceutical companies to advertise directly to consumers. Drug ads often downplay the risks, leading to uninformed decisions. Ads can push consumers toward brand-name drugs, even when cheaper alternatives exist. Also, patients may request unnecessary medications, pressuring doctors to prescribe them. Sure, ads can educate, lead to earlier diagnosis, and boost the economy! But let's limit ads during the first few years of release.
Phil Blair, Manpower
NO: They are a product like any other. With artificial intelligence, clients and patients can educate themselves on various options just like they do with other products. Of course, they should heed their doctors' advice.
Austin Neudecker, Weave Growth
YES: Drugmakers spent $10 billion on direct-to-consumer ads last year. These costs are ultimately reflected in the world's highest per-capita health care bill, with relatively poor health outcomes. Slick spots encourage viewers to "ask your doctor" for brands even when cheaper generics accomplish the same goal. Treatment decisions should be based on clinical evidence, not marketing budgets. Pharma could shift a fraction of this outreach to physician education so that patients will still learn about therapies from an informed source.
Chris Van Gorder, Scripps Health
YES: Absolutely. The cost of pharmaceuticals has become prohibitive to patients and providers like hospitals, and the huge cost of advertising is wrapped into those costs. While we want informed patients, pharmaceutical education should be handled by patients' physicians, not a jingle on TV. Advertising also can be misleading and increase the cost of drugs to taxpayers - which is why many countries prohibit advertising.
Jamie Moraga, Franklin Revere
NO: While I don't enjoy watching the litany of drug advertisements consistently shown on family programming, I don't support a blanket ban. Instead, drug advertising should follow the model currently allowed to cigarette advertising: prohibit ads on TV and radio but allow other forms of advertising with appropriate limitations and regulations. While raising awareness of available treatments can be beneficial, the current barrage of drug advertising is excessive and likely leads to over prescription and increased health care costs.
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