PPC’s Ann Woloson Presents at NLARx (National Legislative Association on Prescription Drug Prices) Meeting

Hallowell, Maine, November 6, 2009—Prescription Policy Choices Executive Director Ann Woloson will present regarding Maine’s predatory marketing law the National Legislative Association on Prescription Drug Prices meeting of state policy makers on Friday, November 6 in Boston. 

Woloson’s presentation—“Predatory Marketing: Who’s lurking in the shadows of cyberspace?”—will highlight issues related to marketing strategies used by drug companies to access children’s personal information, that is in turn used, shared, or sold for marketing purposes. The presentation will include information regarding Maine’s new law, which was passed in an attempt to protect kids from such activity. 

Most adult consumers would probably be surprised and offended to know their personal information, which most assume to be private, is frequently being purchased, used, shared, and sold by a variety of marketers. Now children are being targeted via the internet and cell phones, by marketers including pharmaceutical companies.

“As both a policy maker and a parent, I’m particularly concerned about drug companies reaching out to kids under the guise of providing information,” said Woloson regarding the problem. “They offer gifts and coupons in exchange for a kid’s name, address, date of birth, and other health-related information that will unknowingly be used, shared, or sold for marketing purposes.”

Drug companies use the information to target the marketing of their specific drugs and other products to kids. They sell and share personal information with other companies who also use the information to market products that are sometimes unnecessary or not as effective or safe as other products on the market.  

“This is not about limiting access to legitimate health care information; this is about protecting our children from the inappropriate or unintended use of their personal information,” added Woloson. “The problem is how companies collect children’s personal information and what they do with it.” While federal law offers some protection to kids under the age of 13, young teens are not protected and are vulnerable to misleading activity.

The Maine legislature passed legislation in attempt to protect the state’s teens from predatory marketing practices.  “An Act to Prevent Predatory Marketing Practices against Minors Regarding Data Concerning Health Care Issues” was passed unanimously last spring.  Its intent was to prevent the retrieval of personal health care information from kids and teens that would in turn be used for marketing purposes. Testimony regarding the proposed law described drug company pop-up ads that lure kids to Web sites that provide information and market drugs.  The Web sites not only provide information about their products, but also offer gifts, such as art supplies, backpacks, and music downloads, as well as coupons and free samples to those who provide their personal information.

The law was challenged in court by a number of plaintiffs, including universities and newspapers, who were concerned it is too broad and violates free speech rights under the first amendment. Colleges, for example, were worried they wouldn’t be able to market programs to students or allow them to apply on line. Newspapers were concerned they couldn’t collect and provide information about sports events.

In an attempt to address real concerns about protecting kids from privacy violations and deceptive marketing practices, the final version of the law was broadly rewritten and poses unintended problems. In fact, a legislative committee was asked to review the legislation and make suggestions to change it so that it does not prohibit legitimate activities, but still provides the intended protections teens need.

“There needs to be a balance,” acknowledged Woloson. “The right to provide and collect information over the internet for legitimate purposes needs to be protected, as does the right to protect children’s privacy.”