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The U.S. and New Zealand are the only two countries that allow direct advertising on prescription drugs, according to University of Wisconsin-Madison School of Pharmacy professor Dr. David Kreling, a pharmaceutical policy and marketing expert.

In the U.S., the Food and Drug Administration approves marketing of prescription drugs through the Federal Food, Drug and Cosmetic Act. The act also prohibits using false or misleading information in advertisements.

The FDA requires advertisements to present the statement on a drug’s side effects in a “clear, conspicuous, and neutral manner.”

Most countries prohibit direct advertising of pharmaceuticals because some available drugs aren’t tested enough to guard against rare but potentially severe side effects.

While the U.S. has never had a federal law banning direct advertising of prescription drugs, companies did not publicize prescription information through direct advertisements until the 1980s. Previously only doctors and pharmacists received that information.

U.S. Sen. Ron Johnson, R-Wis., made the claim April 21.

This fact brief is responsive to conversations such as this one.

Sources

• University of Wisconsin-Madison School of Pharmacy: David Kreling
• U.S. Food and Drug Administration: USFDA
• The Conversation: David Menkes, Barbara Mintzes, Joel Lexchin

Is the US one of only two nations that allow direct advertising of prescription drugs?  is a post from Wisconsin Watch, a non-profit investigative news site covering Wisconsin since 2009. Please consider making a contribution to support our journalism.

Tesla’s massive factory in Shanghai, China, has the capacity to build roughly 1 million vehicles every year. However, it could fall quite short of that number this year based on disappointing sales figures of its Chinese-made models in April, which slipped 25.8% from the month prior.

The China Passenger Car Association revealed that a total of 58,459 Tesla Model 3s and Model Ys built in China were sold last month. Importantly, this figure isn’t a reflection of the total number of vehicles that Tesla sold in China alone, but also includes other markets where it sells Shanghai-built vehicles, including Europe and the Asia-Pacific region.

Read: Tesla Sales Crash Over 80% In Sweden And That’s Just The Beginning

This is just the latest episode of Tesla’s sales drop saga in recent days. In April, its sales collapsed in key European markets like Spain, Germany, Belgium, France, the Netherlands, and the UK. Its sales have also tanked in Australia, where, not too long ago, it was the EV leader. In April, seven other EV models from Chinese and Korean brands outsold the Tesla Model Y and Tesla Model 3.

Rivals Are Closing In

Many factors at play can help to explain why Tesla sales continue to fall. Obviously, negative public sentiment about chief executive Elon Musk is one of them, particularly due to his meddling in politics, not just in the US but around the world as well. Additionally, Tesla has a relatively limited and aging line-up of EVs compared to some of its competitors, with the Model 3 and Model Y being the serious volume sellers.

Rivals are also quickly gaining ground on the American brand. In April, Nio’s sales grew 53% from a year ago, with 23,900 vehicles sold. Additionally, Xpeng recorded its second-best month ever, securing 35,045 sales. Xiaomi also managed to deliver more than 28,000 vehicles in April while Li Auto’s sales rose 32% to 33,939.