• Business Week, Tuesday, July 17, 2007 10:30 AM

After a vigorous debate centering on drug companies' right to free speech, Rep. Henry Waxman's (D-Calif.) attempt to forbid companies from advertising directly to consumers until new drugs have been on the market for at least three years was stripped from the drug-safety bill that passed the House last week.

The end of Waxman's proposal, however, may be the beginning of a new debate over drug advertising. Critics are increasingly concerned that the ads encourage consumers to demand drugs they don't need, and in the process put themselves at risk of suffering dangerous side effects.

Rep. Pete Stark (D-Calif.) has introduced a new bill that would prohibit pharma companies from claiming tax deductions for ads promoting drugs that have been on the market for less than two years. Hitting the industry where it hurts--the bottom line--is his attempt to discourage the advertising while circumventing freedom-of-speech concerns.

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