Pharmaceutical Manufacturers Sue Administration over Direct-to-Consumer Advertising Rule

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On Friday, June 14, three drug makers jointly filed suit against the Trump Administration, asserting that a proposed rule regarding direct-to-consumer advertising should be struck down for violating the First Amendment. The administration’s proposal, issued in October 2018, would require pharmaceutical manufacturers to include the wholesale acquisition cost of their products in television advertisements for medications covered by public health programs. After this rule was originally proposed, Aimed Alliance submitted a comment to the Centers for Medicare & Medicaid Services (CMS), outlining concerns with the proposal and how it could lead to confusion among consumers.

In their complaint, the pharmaceutical manufacturers argue that a medication’s wholesale acquisition cost is likely to mislead consumers because it is not a true indicator of a medication’s actual cost to consumers. This would undermine the purpose of the proposal, which is to help consumers make more informed choices about prescription medications.

Aimed Alliance will continue monitoring this lawsuit and will provide updates.

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