Originally Posted by Daithi
I remember something similar happening in the drug industry. The drug manufacturers were selling drugs in Canada for far less than they sold the exact same drugs in the U.S. People were going across the border (or ordering across the Internet) drugs in Canada to get them cheaper. I remember there was a big stink about the practice but I don't remember how it was resolved. Maybe that was one of the reasons for the Medicare expansion providing prescription drugs occurred.
Partially. Some of the stink was also because IIRC the drug companies were claiming that the "high" cost of FDA drug testing was being passed on to consumers, and the fact that people could cross the border and get the same drugs cheaper proved they were lying. Business doesn't like being proven a liar when it tries to strongarm the government.