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April 24, 2009
For Immediate Release

Federal Court Upholds Vermont Datamining Legislation

CONTACT: Sharon Treat
207-242-8558

In IMS v. Sorrell, issued Thursday, April 23, 2009, Judge J. Garvan Murtha, of the United States District Court for the District of Vermont, upheld Vermont legislation restricting the use of prescription data for marketing purposes.  In the same decision, the Court also upheld legislation creating an evidence-based education program for prescribers and creating a consumer fraud cause of action for advertisements printed, distributed or sold in Vermont that violate federal law.

Focusing on the restriction on the use of prescriber data for marketing purposes, the Vermont Court recognized that the use of prescriber profiling increased the cost of health care by only fueling the overwhelming marketing of the most expensive branded medications.  The court went on to recognize that data-driven marketing resulted in the prescription of newer medicines counter to best evidence-based guidelines.

The Court recognized the importance of deferring to the legislature in when deciding the best methods to control rising health care costs.  As stated in the opinion "On this record, the Court will not substitute its judgment for that of the legislature."

This decision comes after the ruling of the United States Court of Appeals for the First Circuit ruling in November that upheld New Hampshire's data-mining regulation in November in IMS v. Ayotte.

Click here for the full text of the ruling. (176 KB PDF)

For more information:

Sharon Treat
207-242-8558
streat@reducedrugprices.org

About the National Legislative Association on Prescription Drug Prices
NLARX is a non-partisan, non-profit organization of state legislators from across the country working to lower prescription drug costs and improve access to affordable medicines. Members include legislators from states in all regions of the country, from New England to Alaska and Hawaii and the District of Columbia. For more information and to sign up for our bi-weekly newsletter, visit our website at www.reducedrugprices.org.