Sponsors (9)
Referred to the Committee on Energy and Commerce, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Last progress June 5, 2025 (8 months ago)
Introduced on June 5, 2025 by David J. Taylor
Requires many direct-to-consumer advertisements for prescription drugs and biological products covered by Medicare or Medicaid to display the drug’s wholesale acquisition cost (WAC) or typical 30‑day price. Products with a 30‑day WAC under $35 are exempt. The Department must issue a final rule within one year of enactment and ads must comply by July 1, 2026; manufacturers who do not comply may face civil money penalties up to $100,000 per violation.
Only the United States and New Zealand legally allow direct-to-consumer advertising of prescription drugs among developed countries.
In 2018, pharmaceutical advertising spending exceeded $6,046,000,000, a 4.8% increase over 2017, and the average American saw about 9 drug ads per day.
The most commonly advertised medication in the U.S. in 2020 had a list price of more than $6,000 for a one‑month supply.
A 2021 GAO report found that two‑thirds of direct‑to‑consumer drug advertising (2016–2018) was concentrated among 39 brand‑name drugs or biologics, about half of which were recently FDA‑approved.
A 2011 CBO report found that manufacturers use direct‑to‑consumer advertising to boost demand and raise the price consumers will pay, increase quantity sold, or both.
DTC Act of 2025
Updated 1 day ago
Last progress January 23, 2025 (1 year ago)
Who is affected and how:
Drug manufacturers and advertisers: Directly affected. They must modify ad content and compliance processes to display WAC for covered products above the $35 threshold. This may require new review workflows, creative redesign, and ongoing price updates.
Consumers and patients (including Medicare beneficiaries): Will see list price information in many DTC ads, which may influence consumer choices and spur price conversations. Because WAC is a list price, it may not reflect actual out‑of‑pocket costs for all individuals.
Federal programs (Medicare and Medicaid): Indirectly affected. The Congress findings state the policy aims to reduce wasteful federal spending by improving consumer decisionmaking; any spending effects would depend on whether transparency changes prescribing or utilization.
Advertising industry and media platforms: Must accommodate new ad content requirements and ensure compliance across mediums (TV, print, online). Digital platforms may need mechanisms to display or verify price statements.
Regulators (HHS): Must complete rulemaking in one year, interpret formatting/placement requirements, define compliance standards, and handle enforcement and penalties.
Potential effects and tradeoffs:
Net result: The bill establishes a straightforward transparency requirement with targeted scope (Medicare/Medicaid covered products above $35) and clear timelines and penalties, shifting compliance burden primarily to manufacturers and regulators while aiming to give consumers more price information.