TV UNITED TO DERAIL DRUG AD RESTRICTIONS

TV broadcasters and cable operators will continue to squabble over retransmission consent, multicast must carry and HD down-conversion.

But this week, on Capitol Hill, they are united in an effort to defeat or amend a Senate bill that would severely curtail the annual $4.7 billion in direct-to-consumer prescription drug advertising.

A Senate vote on the measure is possible early next week.

"This is the most serious challenge to advertising in a decade," says Jim Davidson, executive director of The Advertising Coalition, which has mounted a massive grassroots campaign to persuade senators to drop the ad restrictions.

The coalition represents media and advertising interests, including the National Association of Broadcasters, the National Cable & Telecommunications Association, Magazine Publishers of America and the Association of National Advertisers, among others.

The bill (S. 1082) is sponsored by Ted Kennedy (D-Mass.) and Mike Enzi (R-Wyo.) and would allow the FDA to impose a two-year moratorium of the advertisement of drugs when they first come to market.

It would also tighten restrictions on the content of the drug ads and of the warnings that go along with them.

Broadcasters are working with the coalition in opposition to the bill, says NAB's Dennis Wharton.

"Each year, thousands of Americans seek treatment for heart disease, high blood pressure and other diseases through education that comes in part from prescription drug advertising," he says. "To deny consumers this critical, potential life-saving information would be sheer folly."

The measure also "clearly raises serious First Amendment issues," Wharton says.

"We'll hit the Hill with whatever we can in the time that we have," says Dan Jaffe, executive vice president, Association of National Advertisers. "There's really no component of our community that doesn't see this as a major threat."

The advertising restrictions are part of a much larger Senate drug safety bill that would also increase the user fees that pharmaceutical companies pay to the FDA.  

A floor fight is anticipated. Sen. Pat Roberts (R-Kan.) is expected to lead efforts to eliminate the advertising restrictions.

Roberts tried to strip the advertising provision during a committee vote on the measure, but his amendment failed on a party line vote of 11-10.

Roberts' amendment would have instead required the FDA to review ads for all drugs 45 days prior to publication or broadcast and established a system to impose fines for ads found to be false or misleading.

There's been no action scheduled in the House, although a similar measure has been introduced by House Telecommunications Subcommittee Chairman Ed Markey (D-Mass.) and Henry Waxman (D-Calif.) chairman of the House Oversight Committee.

Drug advertising is not the only TV revenue in congressional crosshairs.

Chairman Markey sent a letter earlier this month to the FCC asking the agency to examine the issue of food ads during kid's programming.

Markey specifically asked the commission to "provide other ideas for using the commission's authority to ensure that commission licensees use the public airwaves in a manner that does not exacerbate the problems of childhood obesity and poor nutrition."
——-Original Message——-
From: Kim McAvoy [mailto:mcavoy@gmail.com]
Sent: Tuesday, April 24, 2007 6:13 PM
To: Wharton, Dennis
Subject: Kennedy Drug Bill

Dennis: I hear  the Kennedy drug bill may get to the Senate floor next
week.

I also heard that NAB has activated its grassroots opposing the
advertising restrictions in the measure.

If that's the case, can I get some examples, letters, etc...

Or, how about a quote from David?

I am writing something tonight.

Thanks —- Kim

—
Kim McAvoy
Contributing Editor
www.tvnewsday.com
540 341-4234

It's an issue that could pick up substantial support at the FCC since Chairman Kevin Martin, and Commissioners Deborah Taylor Tate and Michael Copps are members of the Task Force on Media and Childhood Obesity.

According to TNS Media Intelligence, TV collected $2.7 billion, or 57%, of the $4.7 billion spent on DTC drug advertising in 2006.

Despite the best efforts of the Television Bureau of Advertising and others, most of the drug advertising dollars go to networks. TV stations are now getting only a sliver of the revenue, about 4% or 5%, according TVB's Jack Poor.

Poor suggests that national spot might benefit if pharmaceutical companies were forced by law to curtail massive national advertising campaigns when they first introduce drugs.

Denied the big launches, he says, the drug companies may become more concerned on getting measurable returns on their ad buys and turn to more targeting marketing.

In that scenario, Poor says, national spot, which allows for local and regional marketing, "would have a much better shot at qualifying for some of the money."