States Enact Laws Regulating the Sale and Marketing of Pharmaceutical Products

Rising costs are a major issue facing America's health care industry. One concern is how both the advertising and excessive use of prescription drugs can add to the general inflation experienced throughout the industry. One survey conducted in 2000 showed a startling increase in the use of drugs that were heavily advertised. The rate of use was in fact some six times greater than that of other prescription and non-prescription drugs.

The marketing of various drugs is an important part of the pharmaceutical industry. Companies must follow certain guidelines as to how they promote them. Pharmaceutical compliance is dictated by the federal government. However, in recent years a number of states have on their own taken steps to deal with the prescription drug issue. Nine states and the District of Columbia have enacted laws pertaining to the marketing and sales of prescription drugs.

The states of Massachusetts, Minnesota and Vermont have introduced laws that require pharmaceutical companies to disclose payments that may be made to doctors who provide prescription drugs to their patients. Vermont also limited what it classified as the "fraudulent" advertising of prescription drugs to consumers and doctors, although this law was subsequently declared by a court of appeals to be a violation of free speech.

Maine has enacted more such laws than any other state. It has prohibited drug companies from placing advertisements in the electronic or print media unless they meet federal standards. Other laws enacted by the state specify guidelines on pricing information and prohibit the sale of drug information by pharmaceutical companies that identify the doctor who ordered the medication. Confidentiality is another aspect of laws introduced in Maine and other states that are designed to prevent drug companies from harassing health care providers with advertisements. Nearby New Hampshire prohibits the transferral of personal prescription information for any purpose other than the reimbursement of the pharmacy.

Some states have enacted laws designed to regulate who can market prescription drugs and how the marketing is done. Laws of this nature have been introduced in California, Florida and South Carolina. In West Virginia, an educational campaign on prescription drugs was written into the state's health law, while a similar public awareness effort was launched in Texas.