HB 1125 – Deceptive Lead Generation
Authored by Rep. Matt Lehman (R-Berne)
Sponsored by Sen. Liz Brown (R-Fort Wayne)
Makes false, misleading or deceptive advertisements for claims related to medical devices, legend drugs and certain other actions a deceptive act.
Chamber position: Support
The latest: Chairwoman Brown allowed testimony but held the bill without a vote. One amendment to the bill (not seen) allegedly would have addressed an issue that was of concern to Sen. Aaron Freeman (R-Indianapolis) and Sen. Eric Koch (R-Bedford). It appears that the way the bill is drafted there doesn’t have to be any direct impact to a consumer who might bring an action against someone that conducted a deceptive act.
Indiana Chamber action/commentary: The Indiana Chamber, Indiana Manufacturers Association and the Insurance Institute of Indiana all testified in favor of the bill. The Chamber commented that this legislation does not impact legitimate lead generation or prohibit anyone who has a specific claim against a faulty product. The bill was initiated by Cook Group, a Chamber member. Cook Group testified that its company got caught up in litigation resulting from these types of ads and as a result removed a very important biological device product from the marketplace.
Trial lawyers stated in opposition that the bill goes too far when it comes to deceptive acts and may create a “second tier” of litigation. An orthopedic surgeon testified of the confusion and fear expressed by some of his patients in response to misleading faulty knee replacement advertising.
The bill most likely did not have enough votes to pass the committee and was held to possibly be amended. Senator Freeman indicated that he was a “no” until the issue of bringing an action without direct impact was fixed. It is believed that Sen. Koch and Sen. Mike Bohacek (R-Michigan City) may be of the same opinion.
Resource: Mike Ripley at (317) 264-6883 or email: mripley@indianachamber.com
