FTC Chair Ferguson Addresses Prescription Drug Costs and Robinson-Patman Act Enforcement

Prescription Drug Costs and PBM Practices

• 🗣️ Rep. Sanford Bishop expressed concerns from constituents about pharmacy benefit managers (PBMs) driving up prescription drug prices and harming independent pharmacies, especially in rural areas.
• 🏥 Bishop highlighted that vertical integration in healthcare has led to a few large companies controlling PBMs, pharmacies, and other facilities, giving them power over smaller independent pharmacies.
• ✅ The FTC's recent actions to enforce the law and address PBM practices were welcomed by Bishop.

FTC Resources and Enforcement Capacity

• 💰 Bishop inquired if the FTC has sufficient resources, particularly with the proposed budget, to tackle the significant issue of prescription drug affordability.
• 🗺️ Chairman Ferguson agreed on the importance of addressing PBMs in rural communities, emphasizing the critical role independent pharmacies play as gateways to healthcare.
• 📚 Ferguson stated that the FTC has adequate resources for its ongoing Section 6(b) study and law enforcement, involving a shift away from rulemaking.

Robinson-Patman Act Enforcement

• 🛒 Bishop also raised concerns about independent grocers facing competition challenges due to the purchasing power of larger competitors, leading to store closures and food deserts.
• ⚖️ He asked for an update on the FTC's enforcement of the Robinson-Patman Act, noting its historical under-enforcement.
• 📜 Ferguson acknowledged the importance of enforcing laws passed by Congress, even if there's policy disagreement, and expressed openness to bringing Robinson-Patman Act cases.
• ⚠️ However, Ferguson stressed that such cases should only be brought when confident they won't increase consumer prices, citing a risk associated with Robinson-Patman enforcement.
• 📈 The FTC currently has two ongoing litigation cases related to the Robinson-Patman Act.