Drug manufacturers spend more than two billion dollars a year on direct-to-consumer (DTC) television ads, which the Food and Drug Administration has permitted since 1997. Surveys show virtually all consumers are familiar with these ads.
DTC advertising is permitted in only two economically advanced nations: the United States and New Zealand. In the U.S. DTC has attracted intense public attention and debate. Critics claim it misleads consumers and raises costs, while patients find it a useful source of information about new drugs. Some groups have even asked for a complete ban on DTC advertising. In the meantime, New Zealand’s unique self-regulation system has remained virtually unknown outside of that country.
At this event three experts will discuss the results of new research on DTC advertising in both nations, and the head of New Zealand’s self-regulation system will describe how DTC advertising is regulated. The conference will be moderated by AEI resident scholar John E. Calfee, who has published widely on DTC advertising.
