You are here

OpenMarket: Consumer Product Safety

  • Cyanide, Tylenol and How Free Markets Make You Safer

    September 29, 2014 4:43 PM

    Today is the anniversary of one of the most significant food and drug related events in recent memory. Often discussed in college business classes these days, the 1982 Tylenol poisonings is usually heralded as the prime example of how companies should handle a consumer relations disaster. However, it is also a shining example of how the market itself—acting to protect its customers and thus its profits—can improve public safety. The actions that Johnson & Johnson took in the wake of this tragedy, without a doubt, improved the safety of consumers of all over-the-counter (OTC) drugs for the next 30 years.


    Within three days, beginning on September 29, 1982, seven people in the Chicago area died after taking Extra-Strength Tylenol laced with cyanide. More than 30 years later, who committed this crime and why remains a mystery. After an investigation, it was determined that the cyanide was not introduced in the factory, which, according to Grey Hunter, author of True Crime Stories“left only one other possibility. The Food and Drug Administration (FDA) and law enforcement agencies realized that someone had methodically taken the Tylenol bottles off the shelves at the stores where they were sold, filled the capsules with cyanide and returned them back to the shelves at a later period.”


    The incident triggered nationwide panic and distrust of OTC medicine as well as numerous copycat attempts. Within the next month, the FDA counted 270 incidents of suspected product tampering. However, it was unlikely that any tampering following the Chicago deaths involved Johnson & Johnson products. That’s because the company immediately implemented a protocol to make sure that customers could rest assured that any OTC they purchased from Johnson & Johnson was tamper resistant.


    While advertising genius Jerry Della Femina declared that Johnson & Johnson wouldn’t “ever sell another product under that name,” the company managed to turn the crises into a public relations campaign that would promote Johnson & Johnson products as safer than all others. Tylenol, which had been 37 percent of the analgesic market, plummeted to just 7 percent after the scare, but within a year it bounced back to a 30-percent market share. That is all thanks entirely to Johnson & Johnson’s robust campaign to prove to its customers that its top priority was their safety.


  • CDC Study: Kids Eat Same Amount of Sodium as Worldwide Average

    September 12, 2014 8:33 AM

    It’s not exactly a blood-pressure raising headline, which is probably why the new report from the Centers for Disease Control and Prevention is actually bears the alarming titled, High Sodium Intake in Children and Adolescents: Cause for Concern. The study will no doubt be hailed by public health advocates as proof that something must be done to bring America’s sodium intake in line with the recommendations of the CDC and other health originations. However, the report’s findings, when put into context of 50 years’ worth of research on global salt consumption aren’t alarming at all.


    High sodium intake is associated with all sorts of nasty health problems—as the CDC was careful to note in the opening paragraph of its report. As NBC News put it:


    Studies clearly show that eating a lot of salt can raise blood pressure — not in every single person, but in a significant percentage of the population. The latest survey of what kids eat shows that more than 90 percent of them are eating far too much salt...

  • Distracted by Paranoia, Obama Administration to Regulate Map Apps?

    June 17, 2014 9:23 AM

    story in The New York Times is making the rounds about an Obama administration proposal to clarify the National Highway Traffic Safety Administration's (NHTSA) authority to regulate smartphone navigation apps: the administration supports giving NHTSA this clear authority.


    The tech industry is obviously upset, as they should be. But the paranoia underlying the Obama administration's call for burdensome regulation deserves some examination. 


    As I have noted in the past, the administration has been obsessed with the supposed scourge of cellphones in automobiles, going so far to call on states to enact bans on texting while driving without examining actual crash data. Why? Because the data do not support cell-phone use bans, whether voice communications or texting. The Insurance Institute for Highway Safety found in 2010 that states which enacted texting bans did not see accident claims reductions, speculating that drivers became aware of the ban and associated fines and responded by moving their cell phones further from the windshield to prevent police offers from observing their behavior.


    The lack of real-world evidence supporting their position has not dissuaded the Obama administration from pushing aggressive and likely counterproductive policies related to in-car technology and distraction risks.


Subscribe to OpenMarket: Consumer Product Safety