In August 1997, the Food and Drug Administration (FDA) announced a reinterpretation of its rules on direct-to-consumer (DTC) advertising, the effect of which was to permit branded broadcast advertisements and therefore to increase the volume of DTC advertising several-fold. A substantial body of research, consisting primarily of consumer surveys, provides the basis for a preliminary assessment of the effects of DTC advertisements. The FDA's own assessment, that DTC advertisements can provide substantial benefits and do not appear to cause substantial harm, is consistent with survey and other data. Direct-to-consumer advertisements appear to provide valuable information (including risk information); induce information-seeking (mainly from physicians); prompt patients to discuss conditions not previously discussed; and generate significant, positive externalities including the possibility of improved patient compliance with drug therapy. The effects of DTC advertisements on drug consumption and on health care have yet to be assessed. The author suggests that a further relaxation of FDA rules would accelerate the dissemination of valuable information, with favorable consequences for drug development and consumer health.

Six decades of survey data consistently indicate that about 70% of consumers think that advertising is often untruthful, it seeks to persuade people to buy things they do not want, it should be more strictly regulated, and it nonetheless provides valuable information. Consumers also tend to find that advertising's benefits outweigh its deficits. These beliefs have remained remarkably stable despite large fluctuations in the scope and vigor of advertising regulation.

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