Monday, June 27, 2011
Tuesday, June 7, 2011
A US Circuit Court upheld a $13.5 million claim against Enfamil maker Mead Johnson that was a claim about false advertising. This was a major victory for Store brand infant formulas. The store brand formulas stated that Enfamil's ads were misleading because store brand formulas have the same nutrients at the same levels of Enfamil. PBM Products is the maker of Perrigo's store brand of infant formula who made this claim against the makers of Enfamil. I think this is amazing, that a store brand beat a major name brand manufacturer of baby formulas! I agree that the ingredients are the same but the store brands just don't advertise the same, and therefore we spend less on the store brand formulas because they aren't spending a ton of money on ads every day.
Circuit Judge Andre Davis wrote "As the litigation history of the parties demonstrates, despite having twice been restrained from disseminating misleading advertising, Mead Johnson continued to do so." He went on to say that "PBM cannot fairly compete with Mead Johnson unless and until Mead Johnson stops infecting the marketplace with misleading advertising." Good point!
"The Court has made it clear that the national brand and store brand suppliers are entitled to fairly compete and advertising abuses will not be tolerated," Perrigo Chairman and CEO Joseph C. Papa said in a statement. "We also appreciate the Court's recognition that PBM could lawfully compare its products to national brand products."