Healthy Skepticism Library item: 11872

Warning: This library includes all items relevant to health product marketing that we are aware of regardless of quality. Often we do not agree with all or part of the contents.

Publication type: news

Burke K.
Consumer rights abusers named, shamed
Sydney Morning Herald 2007 Oct 30
http://www.smh.com.au/news/national/consumer-rights-abusers-named-shamed/2007/10/29/1193618795444.html

Full text:

A PHARMACEUTICAL company accused of marketing sleeping pills to school children topped a list of multinationals found to have abused consumer rights.

Advocacy organisations from 115 countries will today learn the US branch of Japan’s largest drug company, Takeda Pharmaceuticals, was judged most unethical at the Consumers International World Congress in Sydney.

Also singled out is Coca-Cola, which was forced to take its bottled water Dasani off shelves in Britain earlier this year after an analysis found the product was sourced from local tap water, and Kellogg’s, for its use of cartoon characters and product tie-ins for its sugar-dense cereals marketed to children worldwide.

The lead paint and faulty toy scandal, which saw more than 21 million toys recalled globally, will also earn Mattel a brickbat, with claims the company’s chief executive, Robert Eckert, blocked a US Government investigation by denying access to its Chinese factories and banning staff from being interviewed. Mattel is also accused of blame-shifting after it emerged about half the toys were recalled because of the company’s own design flaws.

“This is a classic case of avoiding accountability and shifting responsibility on a global scale,” said Richard Lloyd, the director general of Consumers International. “Wherever the fault lies, the safety of consumers was compromised and this should be the full focus of Mattel’s attention.”

The international federation of consumer watchdogs took into account the size of the company, the global scale of sales and marketing, and the direct impact on consumers when drawing up the list of offenders.

Takeda Pharmaceuticals was found to have abused advertising laws in a TV campaign for the insomniac drug ramelteon, marketed as Rozerem in the US. American drug companies are permitted to run “reminder ads” to keep consumers aware of the need to buy medicines, without having to list a drug’s side effects, function and appropriate use.

The ad used images of schoolchildren, blackboards, school books and a school bus. The accompanying voice-over stated: “Rozerem would like to remind you that it’s back-to-school season. Ask your doctor today if Rozerem is right for you.”

While the ad appeared to be targeting parents, the US’s Food and Drug Administration found in March the combination of voice-over and images “suggests Rozerem is indicated for and can be safely used in the pediatric population”.

The Therapeutic Goods Administration said yesterday ramelteon was the first in a new class of agent and was not approved for use in Australia.

A spokeswoman was unable to reveal whether Takeda Pharmaceuticals was applying for registration here.