Ribena - When Good Markets Go Rotten

Heather Roy
Wednesday, 28 March 2007
Press Releases - Health

The $227,500 fine handed down to 'Ribena' makers GlaxoSmithKline yesterday should have PHARMAC examining their medicinal offerings, but also shows the success of New Zealand's current advertising rules, says ACT Health Spokesman Heather Roy.

"If PHARMAC is not already considering the accuracy of GlaxoSmithKline's medicinal offerings, it should be", Mrs Roy said.

"No doubt we will hear the usual calls for greater government regulation, court powers and mandatory labelling - but these would not achieve better products, instead adding costs for consumers and further loopholes for manufacturers and their lawyers.

"We shouldn't distract ourselves by imposing a more restrictive labelling regime on companies which are honest about what they sell. The negative publicity that GlaxoSmithKline faces will be an even bigger deterrent for companies making false claims about their product than the quarter-million-dollar fine.

"When Johnson & Johnson discovered problems with 'Tylenol' in 1982 they acted quickly, ethically and publicly. The brand was saved. GlaxoSmithKline has done the opposite, and will pay the price in the court of public opinion, as well as the court of law.

"As consumers, all Kiwis play a part in determining whether the products on our supermarket shelves are acceptable. If people decide to stop buying Ribena, it will quickly disappear.

"Many products are a combination of 'spin' and substance, but because politicians suffer from the same disease, they shouldn't be trying to influence what Kiwis put in their shopping basket", Mrs Roy said.

ENDS

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