Direct to Consumer Advertising: Helpful or Misleading?

Candyce N. Covington

  During the last several years, the marketing of prescription drugs has undergone substantial change, facilitated by changes in the regulatory environment governing direct-to consumer advertising (DTCA). Since the release in 1997 of new draft guidance by the Food and Drug Administration (FDA), consumer-oriented drug marketing has become pervasive, particularly in broadcast media. Ninety-one percent of US individuals report having seen consumer-oriented drug advertisements, and the pharmaceutical industry spent nearly $2.5 billion on DTCA in 2000 (Food and Drug Administration, 1999). More than ever before, patients are becoming involved in their own health destinies. The consumer movement and the information explosion have empowered patients to participate in decisions concerning their health care. This paper discusses the major perspectives and economic costs of direct to consumer advertising and then uses recent regulation and census data to explain the effects of this advertising on the health care market. The findings demonstrate that depending on what audience you ask, there may be a different answer as to whether or not direct to consumer advertising is helpful or misleading.