AMA Calls for Ban on DTC Pharma Advertising

pharmaceutical-returnThis past Tuesday, the American Medical Association (“AMA”) called for a ban (in the U.S.) of direct-to-consumer (“DTC”) advertising of prescription pharmaceuticals and implantable medical devices.

The AMA cites its belief that DTC advertising contributes to the growing cost of pharmaceuticals in the United States.

According to Kantar Media, pharma companies spent $4.5 billion on consumer advertising in 2014, a 30% jump from 2012. According to IMS Health, spending on prescription medicines jumped 13 percent from 2013 to 2014 to $374 billion.

Presently, there are only two countries in the world that permit DTC advertising: the U.S. and New Zealand. The AMA is the latest health organization to call for a ban on such ads, following the World Health Organization, the National Center for Health Research and other organizations.


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