Monday, January 16, 2012

News Update: Procter & Gamble Co's New Pampers Diapers Under Online Scrutiny By Angry Mothers (PG)


05/13/2010 - Procter & Gamble Co. (NYSE:PG) has become the subject of online scrutiny from a Facebook page started by mothers claiming that the company's new Pampers diapers cause rashes and even chemical burns, leading to a lawsuit this month regarding product-safety regulations in the US and Canada. Procter & Gamble's Pampers division brings in around 11% of the company's total revenue; .5 billion of Proctor & Gamble's total billion revenue from 2009 came from Pampers. Procter & Gamble has responded to the claims as "completely false" and company officials issued a statement saying, "Intensive safety assessments, clinical testing, and consumer testing, before, during, and after the launch shows that Pampers Dry Max is safe." Company officials also said that diaper rashers are common and can affect over 2.5 million babies at any given time. "Obviously we're treating this issue with utmost urgency," said vice president of Pampers North America, Jodi Allen. "We're doing everything we can to reach out to moms and assure them of the safety of our product." Pampers Dry Max debuted in March of this year, and Procter & Gamble's sales have not been negatively affected by the accusations. The US Consumer Product Safety Commission has begun investigating whether the mothers' claims are merited by speaking to customers and reviewing Procter & Gamble's data on product-manufacturing and testing. Shares of the company are trading down 0.21% at .47.

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