Healthy Skepticism Library item: 4536

Warning: This library includes all items relevant to health product marketing that we are aware of regardless of quality. Often we do not agree with all or part of the contents.

Publication type: media release

Consumers’ Association Calls For Regulation of Drug Advertising
Australian Consumers Association 2006 May 2

Full text:

The Federal Government must act now to protect consumers following the ACCC’s admission that it is virtually powerless to change relationships between drug companies and doctors, says the Australian Consumers’
Association.

ACA spokeswoman, Viola Korczak said the Medicines Australian Code of Conduct does not prevent misleading or inappropriate drug marketing. The ACCC has identified many deficiencies in the code, yet it says the law requires it to approve the code.

“Medicines Australia, the peak industry body of the pharmaceutical industry, protects the interests of its members and not consumers”, Ms Korczak said. “Self regulation of pharmaceutical drugs is not effective because the reality is that companies want to increase their bottom line at consumers’ expense”.

She added the pharmaceutical industry attempted to increase demand for their products by wining and dining doctors to encourage them to prescribe their drugs. Although direct to consumer advertising of pharmaceuticals is illegal in Australia, companies get around this in a number of ways

“The code is ineffective in regulating the marketing of drugs because it has no real incentive to do so,” she said.

Problems with the code identified by the ACA include: ineffective sanctions which do not deter repeat breaches, lack of consumer consultation and monitoring among others.

“The effect on consumers is two fold”, said Ms Korczak. “First, if patients are taking drugs they do not need, it will have adverse effects on their long term health. Second, an increase in demand for drugs inflates the PBS. This cost is in part passed onto consumers through increased co-payments”.

“Real policy solutions are needed, not slight changes to an ineffective regulatory code. We need the Government to step in to protect the interests of consumers. Consumers want information to make informed decisions, not advertising,” she said.

The ACA today wrote to the Minister for Health, Tony Abbott outlining its concerns about the Medicines Australia Code of Conduct.

If you would like a personal interview or further information, please phone our switchboard on 02 9577 3333, or Viola Korczak direct on 02
9577 3374 or 0411 788 076.