Class action lawsuit focuses on misleading claims related cold medicine

Nashville, TN – There were several large drug companies named as defendants in class action lawsuits that target their claims that an ingredient was effective despite research to the contrary [1].

Drug companies under fire for misleading practices

Several major companies, including Procter & Gamble (PG.N), Walgreens (WBA.O), and Johnson & Johnson’s (JNJ.N) former consumer business, have been hit with lawsuits accusing them of misleading consumers regarding the effectiveness of cold medicines containing phenylephrine, an ingredient that the unanimous U.S. Food and Drug Administration (FDA) advisory panel recently declared to be ineffective.

The proposed class-action lawsuits were filed following the FDA panel’s review of various studies, which concluded that phenylephrine, marketed as a decongestant, was essentially no more effective than a placebo. The panel’s findings raise serious concerns as, according to an agency presentation, approximately 242 million products containing phenylephrine were sold in the United States the previous year, generating a staggering $1.76 billion in sales and dominating approximately four-fifths of the oral decongestant market.

The initial lawsuit appears to have been filed in the federal court in Pensacola, Florida, with the plaintiff, Steve Audelo, a Florida resident. Audelo claims that Johnson & Johnson Consumer and Procter & Gamble should have been aware by 2018 that their marketing claims about products containing phenylephrine were “false and deceptive.” In 2018, the FDA issued new guidance for evaluating symptoms related to nasal congestion, which demonstrated that previous data supporting phenylephrine’s effectiveness could no longer be relied upon.

The crux of Audelo’s complaint is that he purchased Johnson & Johnson’s Sudafed PE, Benadryl Allergy Plus, and Procter & Gamble’s Vicks NyQuil based on the companies’ representations that these products were effective. The lawsuits have potentially far-reaching implications for these companies, as they face allegations of deceptive marketing and the potential for significant legal and financial consequences in the wake of the FDA panel’s damning assessment of phenylephrine’s efficacy as a decongestant. This legal battle highlights the importance of accurate product claims and the potential liabilities that companies may face when such claims are called into question by regulatory authorities.

What kinds of claims are businesses allowed to make regarding the effectiveness of their products under Tennessee law?

Under Tennessee law, businesses are subject to regulations and consumer protection statutes that govern the claims they are allowed to make regarding the effectiveness of their products. These regulations are in place to ensure that businesses do not engage in deceptive advertising or make false claims that could mislead consumers.

Truthful and Substantiated Claims:

Tennessee law generally allows businesses to make truthful claims about the effectiveness of their products, provided that these claims are substantiated by reliable evidence. Businesses must have scientific or empirical evidence to support any claims they make. This may include clinical studies, laboratory tests, consumer surveys, or expert opinions. The key is that the claims must be accurate and supported by credible evidence.

General Puffery:

Businesses are often allowed to engage in general puffery, which consists of exaggerated, subjective, or vague statements about their products. These statements are typically not considered misleading because they are not specific enough to be objectively evaluated. For example, saying that a product is “the best in the world” or “the ultimate solution” is generally considered puffery and not legally binding.

Comparative Claims:

Some businesses may make comparative claims, comparing their products to those of competitors. Tennessee law generally permits comparative advertising as long as the comparisons are accurate and based on verifiable facts. False or misleading comparisons that unfairly denigrate a competitor’s product can lead to legal action.

Claims Supported by Scientific Evidence:

When a business claims that its product has certain scientific benefits or features, such as health benefits or specific ingredients, Tennessee law requires that these claims be supported by credible scientific evidence. This is particularly important in industries like healthcare, dietary supplements, and pharmaceuticals.

Disclosures and Disclaimers:

In some cases, businesses may be required to include disclosures or disclaimers in their advertising to provide important information to consumers. These disclosures must be clear and conspicuous to ensure that consumers are adequately informed. Failing to include necessary disclosures may result in legal consequences.

Avoiding False or Misleading Claims:

Tennessee law, like federal law, prohibits businesses from making false or misleading claims about their products. This includes claims that a product can cure a specific ailment if there is no scientific evidence to support such a statement. Misleading pricing claims, false endorsements, and deceptive packaging can also lead to legal trouble.

Compliance with Federal Regulations:

Many products and industries are subject to federal regulations, such as those enforced by the Food and Drug Administration (FDA) or the Federal Trade Commission (FTC). Tennessee businesses must also comply with these federal regulations, which often include specific requirements for advertising and labeling.

Enforcement and Penalties:

The Tennessee Division of Consumer Affairs is responsible for enforcing consumer protection laws in the state. Businesses found to be in violation of these laws may face penalties, fines, and orders to cease deceptive practices. Consumers who believe they have been harmed by false or misleading advertising may also have the option to file complaints or pursue legal action against businesses.

In conclusion, Tennessee law generally allows businesses to make truthful and substantiated claims about the effectiveness of their products, provided they adhere to regulations designed to prevent false or misleading advertising. It is crucial for businesses to ensure that their advertising practices comply with both state and federal laws to avoid legal consequences and protect consumers from deceptive practices. If businesses have any doubts about the claims they wish to make, seeking legal advice or consulting with regulatory authorities is a prudent step to take.

Business attorneys are available in Nashville, Tennessee

The Law Office of George R. Fusner is a firm that handles various business matters for local clients in the Nashville area.

USAttorneys.com is a service that works with people who need to find lawyers. Those who need assistance with a referral can call 800-672-3103

Firm contact info:

The Law Office of George R. Fusner

7104 Peach Court, Brentwood TN 37027

615-251-0005

gfusnerlaw.com

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