Fourth Circuit Finds Maryland Price Gouging Law Unconstitutional

On April 13, 2018, the U.S. Court of Appeals for the Fourth Circuit held that a law Maryland passed in 2017, HB 361, was unconstitutional. HB 631 prohibited “price gouging for essential off-patent or generic drugs.” According to the FDA Law Blog, the court held that the law “violates the dormant commerce clause by directly regulating transactions that occur outside of Maryland.” The suit challenging the constitutionality of the law was initiated by the Association for Accessible Medicines (formerly the Generic Pharmaceutical Association).

The majority opinion¬†stresses that their holding is based on the fact that the statute “directly regulates transactions that take place¬†outside Maryland.” (emphasis in original). Thus leaving the door open for Maryland and other states to “enact legislation meant to secure lower prescription drug prices for their citizens.”

Read More

Leave a Reply