Federal Court Upholds New Hampshire Prescription Privacy Law
Thursday, November 20th, 2008Last year, I was co-counsel on an amicus curiae brief (pdf) in IMS Health v. Ayotte, a case about a New Hampshire state law that banned the sale of prescriber-identifiable prescription drug data for marketing purposes. This week, the US Court of Appeals for the First Circuit upheld (pdf) the New Hampshire law. This decision overturns the ruling (pdf) of the lower court, which held that the New Hampshire law violated the free speech rights of data mining companies.
The First Circuit rejected the free speech argument and based their decision on two points. First:
In our view, the portions of the law at issue here regulate conduct, not speech. Unlike stereotypical commercial speech, new information is not filtered into the marketplace with the possibility of stimulating better informed consumer choices [...] and the societal benefits flowing from the prohibited transactions pale in comparison to the negative externalities produced. This unusual combination of features removes the challenged portions of the statute from the proscriptions of the First Amendment.
Second:
Even if the Prescription Information Law amounts to a regulation of protected speech — a proposition with which we disagree — it passes constitutional muster. In combating this novel threat to the cost-effective delivery of health care, New Hampshire has acted with as much forethought and precision as Constitution demands. (more…)

