In 1997, the Food and Drug Administration relaxed the rules for drug advertising on television and radio. Since that time, the airwaves have been flooded with commercials for all sorts of drugs. Some of them are vague, with a simple “Ask your doctor if drug x is right for you”; others spell out what the drug is used for and devote the commercial to telling you how much you will appreciate your product. Most consumers will probably assume that these commercials are honest, that the drugs will do what the ads say they will do, and that there are no side effects other than those mentioned in the ad. That may not be true, and consumers should be aware that the ads may not tell the whole story, and that they may be misleading.
The pharmaceutical industry spends $9 billion per year advertising their products, and the money they spend on television and radio ads is probably the most effective. Doctors may be skeptical of a product touted by a salesman, but consumers are easily swayed by television ads that show people living happy, productive lives while being treated for an ailment using the advertised product. Unfortunately, these ads may not be completely honest. In 2004, the FDA investigated thirty-six ads for drugs that the agency found to be misleading or incomplete in their descriptions of side effects. Consumers might think that the commercials must be honest, since the FDA wouldn’t allow dishonest commercials to air. Unfortunately, that’s not the case. The FDA does not require pharmaceutical companies to provide screening copies of their advertisements prior to airing. The FDA doesn’t actually see the ads until the consumers do. Several months may pass before the FDA takes action. In the case of misleading advertising, the most the FDA can usually do is ask the companies to either stop running the ads or to change them. These requests aren’t always timely, however. In the last five years, the FDA has asked the drug companies to stop running several ads that had already stopped running!
The recent withdrawal of Vioxx and Bextra from the marketplace has given consumers justifiable cause for concern when taking prescription medications. What this means for consumers is that some doubt should be exercised while viewing a commercial for a new drug. If you think an advertised product may be useful to you, discuss it with your physician, but ask if they know of any problems associated with the product. Research the product on the Internet. When your health is at stake, a little caution may be a good idea.
Home Loans – Identity Theft Protection Could Hurt Home Sales
Identity theft has been a hot topic in the news during the last few years. Just a month or so ago, forty million credit card numbers were compromised due to a computer attack on a credit card processor. Consumers are rightly concerned, as it can take years to unravel the problems created when someone’s identity is stolen. New legislation in Texas and California, also proposed elsewhere, is designed to protect consumers by letting them put a “freeze” on their credit reports. Those in the real estate industry are worried, however, that doing so may make it difficult for some people to buy homes.
Debt Consolidation – How to Protect Your Credit Accounts from Theft
Last week, a security exploit at CardSystems Solutions, Inc, a credit card processor, may have allowed thieves to obtain as many as 40 million credit card numbers from unsuspecting victims. The theft was brought about though a virus introduced into the CardSystems that allowed external hackers to obtain access to the account information. Adding to the problem was the fact that CardSystems wasn’t supposed to have the account information at all. It appears that CardSystems “inappropriately” held onto the information after clearing the credit card transactions. At that point, the account information should have been deleted. CardSystems held onto the account information for supposed “research purposes.” Fortunately for those involved, the compromised information only included account numbers and not Social Security numbers, which would have assisted the thieves in identity theft scams. This latest security breach at a credit card processor outlines how anyone can be vulnerable to account or even identity theft. Is there anything that can be done about it?
New Bankruptcy Law – Targeting the Wrong People?
Last April, President Bush enthusiastically signed into law the oddly-named Bankruptcy Abuse and Consumer Protection Act. This bill, representing the biggest overhaul of bankruptcy law in twenty-five years, was written in order to discourage “bankruptcy of convenience.” Proponents of the bill, which included the credit card industry, say that the bill is necessary in order to stop an avalanche of bankruptcy filings by drug users and compulsive shoppers and gamblers. The law makes it harder to have debts wiped away, requires credit counseling for those considering bankruptcy, and holds attorneys responsible for paperwork errors by their clients in bankruptcy cases. The net result will probably be chaos, as fewer attorneys will handle bankruptcy cases, credit counselors will raise their fees, and more consumers with problem debt will be clueless as to what they should do next. Adding to the confusion are some new statistics that suggest that a large number of bankruptcies that are thought to be personal are actually business bankruptcies. As a result, the new law may be unfairly targeting consumers for punishment when they are not actually the biggest part of the problem. Worse, it could be harming small businesses.
