Thursday, January 13, 2011

Johnson & Johnson's Recalls Bring Lawsuit


Just when one thought the recall mess with Johnson & Johnson was over, it isn’t. There isn’t another recall; Instead, a lawsuit against the company over its “phantom recall”. “Oregon Sues J.&J. in Motrin Buyback” by Natasha Singer and Reed Abelson reports the state is suing for violation of “the state’s unlawful trade practices act by misrepresenting the effectiveness and quality of [Motrin]” and “failing to disclose to consumers that the Motrin might have been ineffective”.

In 2009, McNeil Consumer Healthcare, the division of J.&J. responsible for all of the recent recalls, hired contractors to buyback Motrin without publicly acknowledging that the product was on recall; Hence, a “phantom recall”. According to the article, in July 2009 the product was recalled and then in April 2010, the recall became public. The total amount of products recalled, including different brands, is 200 million.

The response from McNeil has been:
“McNeil’s actions were consistent with applicable law and there was no health or safety risk to consumers associated with this limited recall… There is no legal basis for the claims advanced by Oregon”
                                                  - Bonnie Jacobs, spokeswoman

I previously wrote in “Johnson & Johnson: Recalls Do Not Help” that this recall fiasco threatens more than 100 years of a solid brand and the company does not understand the impact of the recalls on the organization or its loyal consumers. Now, part of the impact is a lawsuit. The legality of the suit is irrelevant for consumers; Oregon is suing out of anger and concern for the potential health risk McNeil posed with this “phantom recall”. If it was done to save the company from a publicity nightmare, they failed. The company welcomed every nightmare they were running from. This was a low act which can change the integrity of Johnson and Johnson.

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