SCOTUS Denies Request to Review Decision Finding Maryland Price Gouging Law Unconstitutional

As covered in prior alerts by Arent Fox, the Fourth Circuit held that the law, which prohibits “unconscionable increases” in the price of any “essential off-patent or generic drug,” violated the dormant Commerce Clause because it is not triggered by any conduct that takes place in-state; the law controls the price of transactions that occur out-of-state; and the law would impose a significant burden on interstate commerce if it was similarly enacted by other states. The Court’s decision to deny the petition for certiorari is significant, as it had been speculated that other states might follow in Maryland’s footsteps to enact similar legislation. Since the Fourth Circuit’s ruling will now hold, states may have to look to other examples or come up with original approaches for laws addressing drug price increases.