H.F. 2010 Section 1. SHORT TITLE. This Act shall be known and may be 1 cited as the “Iowa Pharmaceutical Advertising Transparency and 2 Consumer Protection Act”. 3 Sec. 2. NEW SECTION . 714.30 Pharmaceutical advertising —— 4 restrictions. 5 1. As used in this section, unless the context otherwise 6 requires: 7 a. “Government-sponsored” means funded in whole or in part 8 by a federal, state, local government, or an agency thereof. 9 b. “Pharmaceutical company” means any entity that 10 manufactures, markets, distributes, or sells prescription 11 drugs. 12 c. “Prescription drug” means the same as defined in section 13 155A.3. 14 d. “Television advertisement” means any video-based 15 advertisement promoting a prescription drug or vaccine, 16 broadcast via traditional television or a digital streaming 17 platform. 18 2. Beginning January 1, 2027, any pharmaceutical 19 company-sponsored television advertisement aired in this state 20 must comply with all of following: 21 a. Clearly and audibly state the average retail price for 22 a standard thirty-day supply or the cost of a full course of 23 treatment, whichever is higher. 24 b. Disclose all known common and serious side effects and 25 contraindications associated with the prescription drug or 26 vaccine, in plain and understandable language with equal visual 27 and auditory prominence. 28 c. Not be aired for any prescription drug until at least 29 twelve months have passed since the date of initial approval by 30 the federal food and drug administration. 31 3. Beginning January 1, 2027, any government-sponsored 32 television advertisement aired in this state must disclose all 33 known common and serious side effects and contraindications 34 associated with the prescription drug or vaccine, in 35 -1- LSB 5037YH (3) 91 ak/jh 1/ 4

H.F. 2010 plain and understandable language, with equal visual and 1 auditory prominence. This requirement applies to any 2 government-sponsored television advertisement of prescription 3 drugs or vaccines, regardless of the pharmaceutical company 4 that manufactures the prescription drug or vaccine. 5 4. A violation of this section constitutes an unlawful 6 practice pursuant to section 714.16, and the attorney general 7 has all the powers enumerated in that section to enforce the 8 provisions of this section, unless otherwise stated in this 9 section. In enforcing the provisions of this section, the 10 attorney general may do any of the following: 11 a. Notwithstanding section 714.16, subsection 7, seek an 12 assessment by a district court of civil fines not exceeding 13 fifty thousand dollars per violation. In the case of a 14 continuing violation, each day of the continuing violation 15 constitutes a separate violation. 16 b. Request that a district court order a cease and desist or 17 other injunctive relief as appropriate. 18 c. Publicly disclose violative conduct for consumer 19 awareness via notice or post on the attorney general’s internet 20 site. 21 5. An enforcement action taken pursuant to this section 22 shall be in accordance with due process of law and subject to 23 appeal to the district court pursuant to sections 17A.19 and 24 17A.20. 25 6. The attorney general may adopt rules pursuant to chapter 26 17A as necessary or appropriate to implement the purposes of 27 this section. 28 7. Any moneys collected under this section, including 29 civil penalties, costs, attorney fees, or amounts which 30 are specifically directed, shall be paid into the consumer 31 education and litigation fund established under section 32 714.16C. 33 EXPLANATION 34 The inclusion of this explanation does not constitute agreement with 35 -2- LSB 5037YH (3) 91 ak/jh 2/ 4

H.F. 2010 the explanation’s substance by the members of the general assembly. 1 This bill creates the Iowa pharmaceutical advertising 2 transparency and consumer protection Act in new Code section 3 714.30, and provides for civil penalties. 4 The bill provides definitions used in the new Code section 5 including “pharmaceutical company”, “television advertisement”, 6 “prescription drug”, and “government-sponsored”. 7 The bill provides that, beginning on January 1, 2027, 8 pharmaceutical companies are prohibited from airing on 9 television in Iowa any advertisement for prescription drugs or 10 vaccines without clearly and audibly stating the highest of 11 either the average retail price for a standard 30-day supply 12 or the cost of a full course of treatment. Additionally, 13 pharmaceutical companies in these television advertisements 14 must disclose all known common and serious side effects and 15 contraindications associated with the prescription drug or 16 vaccine, in plain and understandable language, with equal 17 visual and auditory prominence. The bill also prohibits 18 pharmaceutical companies from advertising on television any 19 prescription drug until one year after its approval by the 20 federal food and drug administration. 21 The bill further provides that, beginning on January 1, 22 2027, any government-sponsored television advertisement for 23 prescription drugs or vaccines aired in Iowa must disclose all 24 known common and serious side effects and contraindications 25 associated with the prescription drug or vaccine. The bill 26 specifies that this disclosure is required regardless of 27 the pharmaceutical company manufacturing the advertised 28 prescription drug or vaccine. 29 A violation of the bill constitutes an unlawful practice 30 under Code section 714.16, the Iowa consumer fraud Act, which 31 allows the attorney general to investigate, issue subpoenas, 32 recover costs of court action and any investigations, and 33 commence civil proceedings against a person found to have 34 committed an unlawful practice. The bill authorizes the 35 -3- LSB 5037YH (3) 91 ak/jh 3/ 4

H.F. 2010 attorney general to enforce the new Code section using the 1 same powers authorized under the Iowa consumer fraud Act, 2 unless otherwise stated in the new Code section. The new Code 3 section specifies particular enforcement actions that the 4 attorney general can take under the new Code section, including 5 seeking an assessment of civil fines not exceeding $50,000 per 6 violation, requesting from a district court a cease and desist 7 order or other injunctive relief as appropriate, and publicly 8 disclosing violative conduct for consumer awareness. For the 9 purposes of the new Code section, each day of any continuing 10 violation constitutes a separate violation. 11 The new Code section provides that any enforcement action 12 taken by the attorney general must be in accordance with due 13 process and is subject to appeal to the Iowa district court. 14 The attorney general may adopt rules pursuant to Code 15 chapter 17A as necessary or appropriate to implement the new 16 Code section. 17 The bill provides that any moneys collected, including 18 civil penalties, costs, attorney fees, or amounts which are 19 specifically directed be paid into to the consumer protection 20 and litigation fund established in Code section 714.16C, a fund 21 administered by the attorney general designated for consumer 22 litigation and education purposes. 23 -4- LSB 5037YH (3) 91 ak/jh 4/ 4