A report from the US Congressional Budget Office (CBO) examining the
potential impact of a two-year ban on direct-to-consumer (DTC)
advertising for new drugs found the proposed ban would likely have
little impact on prices and could be harmful to consumers. The CBO
report, entitled Potential Effects of a Ban on Direct-to-Consumer
Advertising of New Prescription Drugs, determined that such a DTC
advertising moratorium would not have much of an effect on drug prices
since brand-name drugs comprise such a small portion of the retail
prescription drug market. The report also warned that a ban could prove
harmful to patients, with fewer people seeking treatment as a result of
being exposed to drug advertisements, and by creating a disincentive to
innovation as it could make the marketing of novel, first-in-class drugs
that typically receive heavy promotion less profitable.
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