President Donald Trump has signed an order to intensify regulations on direct-to-consumer drug advertisements. The administration has accused pharmaceutical companies of providing misleading information about medications and their side effects.
FDA Ramps Up Crackdown On Misleading Drug Ads With New Orders
The order, signed on Tuesday, aims to enforce existing regulations on drug advertising, which the administration claims have been increasingly violated by pharmaceutical companies. The U.S. Department of Health and Human Services, along with other agencies, will be tasked with stricter enforcement.
The U.S. Food and Drug Administration (FDA) will also be developing new regulations to effectively eliminate a long-standing provision that has been held responsible for the surge in drug ads on television and other platforms.
The FDA stated it is sending thousands of warning letters to pharmaceutical companies to remove misleading advertisements and issuing around 100 cease-and-desist orders to firms accused of broadcasting deceptive ads.
Ad Transparency Rules Apply To Social Media, Doesn’t Seek Ban
Trump criticized the rising rates of drug advertising and charged Health Secretary Robert F. Kennedy Jr. with ensuring transparency and accuracy in drug ads, particularly regarding any associated risks. According to research firm eMarketer, pharmaceutical companies spent a staggering $5.15 billion on national TV advertising in 2024.
The new regulations will also apply to social media platforms, including influencers who are paid to promote drug products without proper disclosures or compliance with the same rules governing drug manufacturers.
While the memorandum does not seek a complete prohibition, as demanded by RFK Jr. during election campaign, it represents the “strongest, boldest action that we can take” to ensure that patients have enough safety information on pharmaceutical ads, according to administration officials.
White House Proposes 250% Drug Tariff Amid $350 Billion Boom
The Trump administration’s move to tighten regulations on drug advertising comes amid a series of actions targeting the pharmaceutical industry. Earlier in August, the White House proposed a 250% tariff on foreign drug supplies to reduce dependency on overseas drug production.
However, the pharmaceutical industry has also been experiencing a surge in investments, with major drugmakers committing billions to domestic manufacturing and R&D. with Trump’s second-term policies igniting a $350 billion investment bonanza in U.S.-based pharmaceutical and biotech companies.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
