DTC Ads Kennedy’s Next Target?

Share

President Donald J. Trump and his HHS secretary, Robert F. Kennedy, Jr., reportedly are considering ways to make it more expensive for drug companies to use direct-to-consumer (DTC) advertising. Bloomberg News reports they are considering not allowing companies to deduct their DTC ads as a business expense. They also are said to be looking at requiring a more extensive “major statement” of adverse effects in each ad, making them more expensive to produce and air.

The news service says the policy discussions within the administration follow the 6/12 introduction by Sens. Bernie Sanders (I-VT) and Angus King (I-ME) of the End Prescription Drug Ads Now Act to ban DTC ads across television, radio, print, digital platforms, and social media.

A ban on DTC ads was a feature of Kennedy’s failed 2024 bid for president before he withdrew to join the Trump campaign.

Past efforts to ban such ads fell to court rulings that the ads enjoy First Amendment speech protection. Presumably, Kennedy’s plan would attempt to end-run that objection by allowing the ads but making them so expensive that companies would decide not to run them.

In 2023, FDA issued a Final Rule setting five standards that it said drug marketers should follow to ensure that the major statement is clear, conspicuous, and neutral.

Bloomberg says that shortly after the 2024 presidential election, research firm Intron Health identified a potential ban on DTC ads as “the biggest imminent threat from RFK and the new Trump administration.”

The researchers said the return-on-investment on drug ads can range from 100% to 500%, depending on the drug. Companies, Intron said, would almost certainly see a decline in drug sales, even as they saved money on marketing.

In the first quarter of 2025, TV ad spending was up 30% over the same period last year, Bloomberg reports.

Read more