Federal Court Invalidates Trump Administration’s Direct-to-Consumer Advertising Price Transparency Rule

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On July 8, 2019, Judge Amit Mehta of the D.C. District Court ruled against the Trump Administration, holding that the U.S. Department of Health and Human Services (HHS) exceeded its authority when it promulgated a rule that would have required pharmaceutical manufacturers to include their products’ list prices in direct-to-consumer advertisements. However, Judge Mehta did not rule on the manufacturers’ First Amendment argument. The Trump Administration has not yet announced how they will proceed, but they will likely appeal the ruling.

The Trump Administration’s rule would have required pharmaceutical manufacturers to include their products’ list prices in television ads for medications that cost more than $35 a month. The rule was one of the most visible steps the administration had taken toward improving drug pricing transparency and lowering costs, an issue President Trump has indicated to be of great importance.

To read the full ruling, click here.

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