STAT+: Generic group sues Illinois over a price-gouging law with ‘draconian regulations’
The trade group for generic drug companies in the U.S. filed a lawsuit alleging a new Illinois law that is designed to prevent price gouging is unconstitutional.
The trade group for generic drug companies in the U.S. has filed a lawsuit alleging a new Illinois law that is designed to prevent price gouging is unconstitutional, the latest effort to push back against states attempting to lower the cost of medicines.
In its lawsuit, the Association for Accessible Medicines argued the law gives the state the power to regulate interstate commerce. At issue is the Dormant Commerce Clause, a constitutional principle that bars individual states from regulating trade beyond their own borders. The group argued the law runs afoul of the U.S. Constitution because it penalizes generic drug companies for nationwide price hikes.
The trade group also contended the law violates the constitutional right to due process because the state has the right to file lawsuits over out-of-state transactions. The lawsuit further maintained the law offers “an extraordinarily vague definition” of price gouging. The group also alleged that the $10,000 penalty per day for each violation is “massive” and will cause its members “significant economic harm.”
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