Store Brand Baby Formula Wins a Final Round in Court
Store Brand Formula won a major victory this week when a U.S. Circuit Court upheld a $13.5 million false advertising claim against Enfamil maker Mead Johnson.
The case centered on the successful argument by PBM Products, Perrigo’s store brand infant formula business, that Enfamil’s advertisements of superiority to store brand formulas were false and misleading because store brand formulas offer the same nutrients at the same levels as Enfamil.
"As the litigation history of the parties demonstrates, despite having twice been restrained from disseminating misleading advertising, Mead Johnson continued to do so," Circuit Judge Andre Davis wrote. "PBM cannot fairly compete with Mead Johnson unless and until Mead Johnson stops infecting the marketplace with misleading advertising."
"The Court has made it clear that national brand and store brand suppliers are entitled to fairly compete and advertising abuses will not be tolerated," said Perrigo Chairman and CEO Joseph C. Papa in a statement. "We also appreciate the Court's recognition that PBM could lawfully compare its products to national brand products."
More information can be found in Business Week.