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RFK Jr. Plans Crackdown on Pharma Ads in Threat to $10 Billion Market
Key Excerpts from Article on Website of Yahoo News
Posted: June 25th, 2025
https://finance.yahoo.com/news/rfk-jr-plans-crackdown-pharma...
The Trump administration is discussing policies that would make it harder and more expensive for pharmaceutical companies to advertise directly to patients, in a move that could disrupt more than $10 billion in annual ad spending. Although the US is the only place, besides New Zealand, where pharma companies can directly advertise, banning pharma ads outright could make the administration vulnerable to lawsuits, so it’s instead focusing on cutting down on the practice by adding legal and financial hurdles. The two policies the administration has focused in on would be to require greater disclosures of side effects of a drug within each ad — likely making broadcast ads much longer and prohibitively expensive — or removing the industry’s ability to deduct direct-to-consumer advertising as a business expense for tax purposes. The new policies could threaten a key source of revenue to advertising and media companies, as well as the US pharmaceutical industry. Companies spent $10.8 billion in 2024 on direct-to-consumer pharmaceutical advertising in total. Before the loosening of advertising regulations by the Food and Drug Administration in 1997, US pharma companies had to list all possible side effects for a medication if they wanted to mention which condition the drug being advertised was intended to treat. Reading out a list of side effects took so long it drove up the cost for air time and meant there wasn’t as much broadcast advertising as there is today.
Note: For more along these lines, read our concise summaries of news articles on Big Pharma corruption.
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