Direct-to-consumer advertising of prescription medicines in the United States and New Zealand: an analysis of regulatory approaches and consumer responses

Abstract

New Zealand and the United States are the only two advanced nations to permit direct-to-consumer advertising (DTCA) of prescription medicines, but they use very different regulatory regimes. This paper examines the evolution of DTCA in both countries, compares the New Zealand self-regulatory model with regulation by the US Food and Drug Administration, and examines consumer survey results from both nations. Surveys reveal striking consistencies in overall attitudes towards DTCA, albeit with strong differences on a few topics directly affected by differences in regulations, such as the balance of risk and benefit information. Consumers think DTCA helps them learn about new drugs and talk to their doctors about possible treatments, with little apparent negative impact on patient.doctor communications. Regulation in New Zealand is more efficient than American regulation, although more effective disclosure of risk information could address concerns raised by New Zealand consumer groups.

Additional information

Notes on contributors

Janet Hoek

Janet Hoek is a Professor in the Department of Marketing at Massey University, New Zealand. She has a particular interest in marketing regulation; she has written extensively on the regulation of tobacco promotions, and the ethics and effects of prescription medicine advertising. She has also published several papers on the measurement of consumer deception and has served as an expert witness in several cases involving alleged deception or breach of trade marks. Professor Hoek.s work has been published in the Journal of Public Policy and Marketing, Public Opinion Quarterly and the Intenational Journal of Market Research.

Philip Gendall

Philip Gendall is Professor of Marketing and Head of the Department of Marketing at Massey University, New Zealand. His research interests include research methodology, specifically question wording and questionnaire design, and social and regulatory issues in marketing. He represents New Zealand in the International Social Survey Programme. Professor Gendall.s work has appeared in several journals including the European Journal of Marketing, International Journal of Market Research, Journal of Product and Brand Management, and the International Journal of Advertising, among others.

John Calfee

John Calfee is a Resident Scholar at the American Enterprise Institute, Washington DC. He holds a PhD in Economics from the University of California at Berkeley, and has taught at Boston University and the University of Maryland. Dr Calfee.s research interests include pharmaceutical advertising and regulation, healthcare policy, the tort liability system, and tobacco regulation. He is the author of Prices, Markets, and the Pharmaceutical Revolution, and his work has been published in the Journal of Marketing, Journal of Public Policy and Marketing and the International Journal of Advertising.