ROANOKE TIMES
Copyright (c) 1996, Roanoke Times
DATE: Thursday, June 27, 1996 TAG: 9606270051
SECTION: BUSINESS PAGE: B-8 EDITION: METRO
Long-lived Doan's pills accused of false ads
WASHINGTON - The government declared war on Doan's Pills on Wednesday, saying the backache remedy that has held a place in America's medicine cabinets for more than 60 years does not live up to its advertising.
``If nothing seems to help, try Doan's,'' the pill's ads have said for years. But the Federal Trade Commission said Doan's helps no more than products costing half as much. The agency said it may require Doan's owner, the Swiss pharmaceutical giant Ciba-Geigy Corp., to run ``corrective'' advertisements.
``We categorically disagree with the FTC's ruling, and we plan on fighting the issue in court,'' said Eric Jackson, a spokesman for Ciba.
Ciba declined to give sales figures, but an advertising directory said it spent $5.5 million promoting the pills in one recent year.
By a 4-1 vote, the FTC commissioners decided to compel Ciba to back up its advertising claims before an administrative law judge. The case then could take a year to argue. Doan's ads do not directly assert superiority, but they imply it, FTC lawyer Joel Winston said.
The active ingredient in Doan's is magnesium salicylate, one of a class of chemicals that reduces inflammation. FTC attorney Joel Winston said Doan's price - $10.29 for 48 pills, compared with $4.37 for 50 Tylenols in a Washington drugstore - amounted to a ``price signal'' implying the product's superiority.
By a 4-1 vote, the FTC commissioners decided to compel Ciba to back up its advertising claims before an administrative law judge.
- Associated Press
Theft, sex charges get Astra CEO fired
WESTBORO, Mass. - The chief executive of the pharmaceutical company Astra USA was fired after being accused of replacing older women with young beauties, pressuring female employees to have sex and embezzling $2 million.
Astra AB of Sweden, Astra USA's parent, said Wednesday it had ousted Lars Bildman, head of U.S. operations, after investigators confirmed misconduct and found evidence of embezzlement. Astra, creator of Prilosec, an ulcer medicine that is the world's second-best selling drug, also fired a second executive, and two others resigned.
- Associated Press
Briefly ...
Southern Title Settlement Co. has opened an office at 3922 Electric Road in Southwest Roanoke. The company offers title searches, title insurance and closing services to real estate-related professions. The office is headed by Jeannie Moore, vice president, who was associated with Virginia Title Center.
The Quaker Oats Co. on Wednesday became the fourth and last of the nation's largest cereal makers to reduce prices on its products, trimming an average of 15 percent from such popular brands as Cap'n Crunch and Life. Prices of its line of bagged cereals remain unchanged.
Trans World Airlines Inc., tired of ranking near the bottom in customer service ratings, says it will pay employees bonuses if they improve performance. TWA said it will pay each employee $65 for any month in which the airline ranks among the top five carriers in three crucial categories - on-time performance, customer complaints and baggage handling. It will pay them $35 more if it finishes first in one of the categories.
LENGTH: Medium: 67 linesby CNB