[Congressional Record (Bound Edition), Volume 149 (2003), Part 16]
[Extensions of Remarks]
[Pages 22752-22753]
[From the U.S. Government Publishing Office, www.gpo.gov]




  INTRODUCTION OF THE FAIR BALANCE PRESCRIPTION DRUG ADVERTISEMENT ACT

                                 ______
                                 

                        HON. FORTNEY PETE STARK

                             of california

                    in the house of representatives

                      Tuesday, September 23, 2003

  Mr. STARK. Mr. Speaker, I rise today to introduce the Fair Balance 
Prescription Drug Advertisement Act, a bill to ensure that Direct-To-
Consumer (DTC) prescription drug ads provide complete and accurate 
information about prescription drugs.
  The Medicare prescription drug bill passed by the Republicans in the 
House does nothing to control drug pricing. In fact, their bill 
explicitly prohibits Medicare from negotiating with drug manufacturers 
to get a better deal on prescription drug prices for seniors.
  I believe Congress must do something about the high costs of 
prescription drugs, for Medicare beneficiaries and all Americans. 
That's why I'm introducing this legislation.
  The Fair Balance Prescription Drug Advertisement Act will empower the 
FDA to determine whether pharmaceutical companies present information 
about their products in a fair manner, balancing risks and benefits. 
Any advertisements found to violate this standard would be denied 
currently allowed tax deductions.
  Under this bill, print ads would be required to display pros and cons 
in equal typeface and space, and on the same or facing pages. If the 
advertisements ran onto additional pages, those pages would have to be 
consecutive with the first pages. In television and radio ads, risk and 
benefit descriptions would be allotted equal airtime and volume level.
  Since the FDA relaxed restrictions on television advertising in 1997, 
DTC advertising has soared. Drug companies' advertising expenditure 
doubled between 1998 and 2000, and is expected to reach seven billion 
dollars annually by 2005.
  As a consequence of such large-scale advertising, consumers have been 
led to demand drugs that may not be medically necessary or appropriate 
for their conditions. According to the National Institute for Health 
Care Management, 86% of patients who requested a prescription for 
Clarion from their doctor received one (this drug is now available 
over-the-counter). Similarly, a 2000 study showed that nearly half of 
the increased spending on pharmaceuticals was attributable to the fifty 
most advertised prescription drugs, and also that DTC advertising has 
increased the prices of prescriptions.
  DTC advertising not only drives up the costs of prescriptions, but 
also increases demand for more expensive drugs in cases when a cheaper 
alternative will do. The cost of prescription drugs is heavily 
impacting our country. We all know the problems facing seniors and 
their ability to afford their medications. States are finding the costs 
of providing comprehensive drug benefits so expensive that Illinois has 
announced that they will contract with a Canadian pharmacy to get a 
better deal for their state employees. Employers are facing similar 
dilemmas. Given this cost crisis, we need to take every step we can to 
reduce increasing drug costs. That's why making sure that 
advertisements aid consumers in making informed decisions, rather than 
simply increasing demand for the newest drug, makes so much sense.
  The Fair Balance Prescription Drug Advertisement Act is endorsed by 
the California Public Employees' Retirement System, which provides 
health benefits to more than 1.3 million members. They know far too 
well the difficulties facing consumers and employers due to increasing 
drug prices. Their President, Sean Harrigan, says, ``Representative 
Stark's bill is the best medicine for reining in the costs of drugs 
while ensuring consumers get the real truth about the benefits and the 
risks of direct-to-consumer advertised drugs.''
  The new guidelines this bill sets forth will help the pharmaceutical 
industry educate consumers by enabling them to make informed decisions 
based on a fair and balanced presentation of risks and benefits. 
Today's DTC ads simply don't meet that standard. One advertising 
executive with significant experience with DTC ads said, ``we want to 
identify the emotions we can tap into to get that customer to take the 
desired course of action.'' That's not a decision based on facts.
  In a survey of 1,872 people who viewed drug advertisements, 70 
percent said they had learned little or nothing more about the 
conditions the drug is supposed to treat, and over half said they 
learned little or nothing more about the drug being advertised. Very 
few ads informed viewers of how successful the treatment is, what 
alternative treatments are available, how long a patient needs to take 
the drug, or attempt to correct common misconceptions about the disease 
the drug treats. Predictably, a strong majority of doctors--75 
percent--said that the ads caused patients to think that advertised 
drugs work better than they do.
  Physicians themselves have voiced their frustration with the way DTC 
ads have harmed their ability to provide the best medical care to their 
patients. In fact, the American Medical Association has asked the FDA 
to require pharmaceutical companies to include a disclaimer in all ads 
stating that physicians may suggest other alternative, medically 
appropriate treatments.
  The bill I am introducing today is simple. It would eliminate the tax 
deduction for ads that do not fairly present the risks and benefits of 
prescription drugs. Only ads that truly and honestly provide balanced 
information that enables consumers to make informed, educated decisions 
would continue to qualify for a business tax deduction.
  Since the pharmaceutical industry already argues that their ads 
educate consumers, they should have nothing to fear by this bill. This 
bill will provide an incentive for advertising to

[[Page 22753]]

provide education rather than blatant promotional material that spurs 
patients to demand drugs that may be medically inappropriate for their 
condition and drive up costs. This is a bill we should be able to 
support on a broad bipartisan basis. We should pass it immediately and 
take a concrete step to reduce prescription drug price increases for 
America's consumers now. The American public is sick of rhetoric on 
prescription drug price. They want action. Join me in support of the 
Fair Balance Prescription Drug Advertisement Act.

                          ____________________