Johnson & Johnson to Discontinue Talcum Powder Sales in U.S. and Canada Amid Ongoing Lawsuits
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Johnson & Johnson has announced it will cease the sale of its talc-based baby powder products in the U.S. and Canada following years of legal battles and a significant decline in sales. The decision to stop shipping these products was based on a “commercial decision,” with the company planning to wind down sales gradually. Existing inventory will continue to be available through retailers until supplies run out.
The company, which first introduced its iconic baby powder in the 1890s, has faced numerous lawsuits since 2014, accusing it of concealing the potential cancer risks associated with its talc-based baby powder. While J&J has had some success in appealing the jury verdicts and reducing financial penalties, it has still been hit with billions of dollars in damages. Despite the ongoing litigation, shares of the health-care giant only saw a slight drop of 0.3% to $148.55.
The move comes as J&J seeks to refocus its product portfolio, especially following the impact of the COVID-19 pandemic, which has forced companies to reassess and streamline their operations. J&J had already seen a 60% drop in talc powder sales since 2017, blaming a combination of misinformation about the product’s safety and constant litigation-related advertising.
Going forward, J&J will continue to sell its cornstarch-based baby powder in the U.S. and Canada, a product that represents 75% of its U.S. baby powder sales. However, talc-based products will still be available in markets outside of North America, where demand remains stronger.
This decision is expected to reduce the volume of cancer-related lawsuits against the company, which has faced a 15% rise in new cases. Legal experts suggest the discontinuation of talc sales could be a strategic move by J&J to “put a fence around the litigation,” potentially bringing an end to the ongoing talc-related claims.
J&J maintains its confidence in the safety of its talc-based products, despite the controversy, and will continue to defend them in court. Meanwhile, competitors like Bausch Health have already switched to using cornstarch as the main ingredient in their baby powders, signaling a shift away from talc in the industry.
As consumer habits evolve and litigation continues to mount, Johnson & Johnson faces an uncertain future for its iconic product, but it remains committed to defending its legacy in the courtroom.