U.S. mag industry wins battle to retain direct-to-consumer drug advertising

The U.S. magazine industry, in coalition with other advertising-driven media, has decisively beaten back an attempt by the U.S. Congress to restrict direct-to-consumer pharmaceutical advertising.

It means that pharamaceutical companies are free to place DTC ads in what represented $1.6 billion in ad revenue for the U.S. magazines last year.

According to a statement from the Magazine Publishers of America (MPA) the U.S. Senate unanimously passed H.R. 3580, the Food and Drug Administration Amendments Act of 2006. Earlier, it has passed the House of Representatives by a whopping 405-7. Now it goes to President George Bush for his signature.

The passage of the legislation may put significant pressure on Canadian legislators to consider loosening regulations here that forbid most such advertising in Canadian magazines and on television.

The Canadian industry has long bridled at the fact that Canadian law largely prevents such advertising but that U.S. magazines selling in Canada blithely ignore this. Since most drug companies are multi-nationals and operate in both countries, Canadian magazines don't get such revenue while their U.S. competitors do.

Advocates of the U.S. bill maintained that DTC advertising pushes up health care costs by leading patients to put pressure on their doctors for high-priced, brand-name prescriptions they may not need.

MPA and other media groups have lobbied hard for several years to protect this revenue source, though it the controversy has generally been couched in terms of protecting commercial speech under the first amendment of the U.S. constitution.

"While MPA is very pleased that our extensive lobbying efforts defeated proposals that would have severely restricted DTC advertising, said the organization, "several key members of Congress remain concerned about DTC advertising. MPA and its coalition will continue to monitor this issue closely and educate Members regarding the significant educational and informational value to consumers of DTC advertising, particularly in print.