Challenges in Regulating Direct-to-Consumer Advertising

Trade Agreements and Direct-to-Consumer Advertising of Pharmaceuticals

There is growing international concern about the risks posed by direct-to-consumer advertising (DTCA) of prescription pharmaceuticals, including via the internet. Recent trade agreements negotiated by the United States, however, incorporate provisions that may constrain national regulation of DTCA. Some provisions explicitly mention DTCA; others enable foreign investors to seek compensation if ...

Direct-to-consumer advertising and consumer welfare

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Direct-to-Consumer Pharmaceutical Advertising

Types of Advertisements There are currently several types of DTC drug advertisements (Table 1).5,11 One type is the “help-seeking ad,” which provides only information about a medical condition and encourages patients to contact their physician but doesn’t mention a product.5,11 Another category is the “reminder ad,” which includes the product name; this type may provide information about streng...

Direct to consumer advertising in pharmaceutical markets.

We study effects of direct-to-consumer advertising (DTCA) in the prescription drug market. There are two pharmaceutical firms providing horizontally differentiated (branded) drugs. Patients differ in their susceptibility to the drugs. If DTCA is allowed, this can be employed to induce (additional) patient visits. Physicians perfectly observe the patients' type (of illness), but rely on informat...

Effects of Direct-to-consumer Drug Advertising