HF 2010 (LSB 5037YH (3) 91)

HOUSE FILE 2010

BY  GEARHART

A BILL FOR

An Act relating to the advertising of prescription drugs and vaccines and providing civil penalties.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  SHORT TITLE.  This Act shall be known and may be cited as the “Iowa Pharmaceutical Advertising Transparency and Consumer Protection Act”.
    Sec. 2.  NEW SECTION.  714.30  Pharmaceutical advertising —— restrictions.
   1.  As used in this section, unless the context otherwise requires:
   a.  “Government-sponsored” means funded in whole or in part by a federal, state, local government, or an agency thereof.
   b.  “Pharmaceutical company” means any entity that manufactures, markets, distributes, or sells prescription drugs.
   c.  “Prescription drug” means the same as defined in section 155A.3.
   d.  “Television advertisement” means any video-based advertisement promoting a prescription drug or vaccine, broadcast via traditional television or a digital streaming platform.
   2.  Beginning January 1, 2027, any pharmaceutical company-sponsored television advertisement aired in this state must comply with all of following:
   a.  Clearly and audibly state the average retail price for a standard thirty-day supply or the cost of a full course of treatment, whichever is higher.
   b.  Disclose all known common and serious side effects and contraindications associated with the prescription drug or vaccine, in plain and understandable language with equal visual and auditory prominence.
   c.  Not be aired for any prescription drug until at least twelve months have passed since the date of initial approval by the federal food and drug administration.
   3.  Beginning January 1, 2027, any government-sponsored television advertisement aired in this state must disclose all known common and serious side effects and contraindications associated with the prescription drug or vaccine, in plain and understandable language, with equal visual and auditory prominence. This requirement applies to any government-sponsored television advertisement of prescription drugs or vaccines, regardless of the pharmaceutical company that manufactures the prescription drug or vaccine.
   4.  A violation of this section constitutes an unlawful practice pursuant to section 714.16, and the attorney general has all the powers enumerated in that section to enforce the provisions of this section, unless otherwise stated in this section. In enforcing the provisions of this section, the attorney general may do any of the following:
   a.  Notwithstanding section 714.16, subsection 7, seek an assessment by a district court of civil fines not exceeding fifty thousand dollars per violation. In the case of a continuing violation, each day of the continuing violation constitutes a separate violation.
   b.  Request that a district court order a cease and desist or other injunctive relief as appropriate.
   c.  Publicly disclose violative conduct for consumer awareness via notice or post on the attorney general’s internet site.
   5.  An enforcement action taken pursuant to this section shall be in accordance with due process of law and subject to appeal to the district court pursuant to sections 17A.19 and 17A.20.
   6.  The attorney general may adopt rules pursuant to chapter 17A as necessary or appropriate to implement the purposes of this section.
   7.  Any moneys collected under this section, including civil penalties, costs, attorney fees, or amounts which are specifically directed, shall be paid into the consumer education and litigation fund established under section 714.16C.
EXPLANATION
The inclusion of this explanation does not constitute agreement with

the explanation’s substance by the members of the general assembly.
   This bill creates the Iowa pharmaceutical advertising transparency and consumer protection Act in new Code section 714.30, and provides for civil penalties.
    The bill provides definitions used in the new Code section including “pharmaceutical company”, “television advertisement”, “prescription drug”, and “government-sponsored”.
   The bill provides that, beginning on January 1, 2027, pharmaceutical companies are prohibited from airing on television in Iowa any advertisement for prescription drugs or vaccines without clearly and audibly stating the highest of either the average retail price for a standard 30-day supply or the cost of a full course of treatment. Additionally, pharmaceutical companies in these television advertisements must disclose all known common and serious side effects and contraindications associated with the prescription drug or vaccine, in plain and understandable language, with equal visual and auditory prominence. The bill also prohibits pharmaceutical companies from advertising on television any prescription drug until one year after its approval by the federal food and drug administration.
   The bill further provides that, beginning on January 1, 2027, any government-sponsored television advertisement for prescription drugs or vaccines aired in Iowa must disclose all known common and serious side effects and contraindications associated with the prescription drug or vaccine. The bill specifies that this disclosure is required regardless of the pharmaceutical company manufacturing the advertised prescription drug or vaccine.
   A violation of the bill constitutes an unlawful practice under Code section 714.16, the Iowa consumer fraud Act, which allows the attorney general to investigate, issue subpoenas, recover costs of court action and any investigations, and commence civil proceedings against a person found to have committed an unlawful practice. The bill authorizes the attorney general to enforce the new Code section using the same powers authorized under the Iowa consumer fraud Act, unless otherwise stated in the new Code section. The new Code section specifies particular enforcement actions that the attorney general can take under the new Code section, including seeking an assessment of civil fines not exceeding $50,000 per violation, requesting from a district court a cease and desist order or other injunctive relief as appropriate, and publicly disclosing violative conduct for consumer awareness. For the purposes of the new Code section, each day of any continuing violation constitutes a separate violation.
   The new Code section provides that any enforcement action taken by the attorney general must be in accordance with due process and is subject to appeal to the Iowa district court.
   The attorney general may adopt rules pursuant to Code chapter 17A as necessary or appropriate to implement the new Code section.
   The bill provides that any moneys collected, including civil penalties, costs, attorney fees, or amounts which are specifically directed be paid into to the consumer protection and litigation fund established in Code section 714.16C, a fund administered by the attorney general designated for consumer litigation and education purposes.