Thursday, September 2, 2010

Regulators: Rash Not Pampers's Fault

The Pampers brand of Procter & Gamble Company had been under inspection by the U.S. Consumer Product Safety Commission and Health Canada to declare the effect the new Pampers Dry Max diapers had on skin. 4,700 reports of diaper rash were reported to the CPSC, but about 85% of reports followed the national attention surrounding the allegations.

Pampers comprises 11% of Procter & Gamble’s revenue. P&G lost sales during the controversy, but has since increased revenue. With the report from CPSC stating there is “no link between the company’s new Pampers Dry Max diapers and reports of diaper rash,” it can be inferred that revenue will continue to rise because, as a society, we tend to return to our old habits, which include purchasing familiar brands, like Pampers.

http://online.wsj.com/article/SB10001424052748704206804575467820450509254.html

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