Peace After 1 Decade of Litigation, Johnson & Johnson Pays Rp133 Trillion Compensation for Baby Powder Cancer Lawsuit

Dream - Johnson & Johnson has agreed to pay compensation of US$ 8.9 billion or around Rp133 trillion to settle legal claims stating that the company's baby powder products are suspected of causing cancer.

The amount of money paid is much larger than J&J's initial offer of US$ 2 billion or around Rp29 trillion.

Quoted from The Guardian, the agreement follows a January 2023 appeals court ruling that overturned J&J's controversial tactics.

The company tried to evade responsibility by transferring its powder business to a subsidiary.

Johnson & Johnson subsidiary, LTL Management, has filed for bankruptcy protection for the second time on Tuesday, April 4, 2023.

They plan to present a proposed settlement plan to the judge as early as May 14, 2023.

J&J said in a statement that approximately 60,000 baby powder product plaintiffs have agreed to the proposal.

Previously, J&J insisted that its products were safe and did not cause cancer. Company lawyers claimed that the lawsuits were unfounded and accused the plaintiffs' lawyers of advertising their clients with the aim of making a large amount of money.

For the current situation, the company is still at risk of lawsuits, as other plaintiffs may oppose the company and file appeals.

Then, Jason Itkin, the attorney representing thousands of plaintiffs, issued a statement last Tuesday stating that the agreement reached was false and did not even pay many victims' medical bills.

“Resolving this issue through the proposed reorganization plan is fairer and more efficient, allowing plaintiffs to receive compensation in a timely manner and allowing the company to remain focused on our commitment to make a positive and profound impact on human health,” said Erik Haas, Johnson & Johnson's vice president of global litigation, quoting nytimes.com

Previously, a Reuters investigation in December 2018 revealed that J&J knew about tests showing its powder contained carcinogenic asbestos, but kept the information secret.

J&J claimed that its baby powder and other powder products were safe, and did not cause cancer or contain asbestos.

Then in 2020, the company announced that it would stop selling the powder in the United States and Canada due to misinformation about the product.

Then in 2023, the company announced that it would discontinue the product worldwide.

Citing the Indonesian Food and Drug Monitoring Agency (BPOM) on a written statement from 2016, it was known that the product names mentioned in the news that are suspected of causing cancer are Johnson's Baby Powder Cornstarch with Aloe & Vitamin E and Johnson's Baby Powder Calming Lavender & Chamomile.

Based on a search of the cosmetics notification database at BPOM, there are 9 Johnson & Johnson baby powder products out of 75 notified baby powder products. "However, the Johnson & Johnson baby powder products mentioned in the above news are not found in the cosmetics notification database," said a written statement issued by the Legal and Public Relations Bureau of BPOM RI on February 26, 2015. BPOM also affirmed that the composition of Johnson & Johnson baby powder products notified to BPOM generally contains talc with a content of 98% - 99.83%

Referring to the Head of BPOM RI Regulation Number 18 of 2015 concerning Technical Requirements for Cosmetic Materials, Attachment I List of Permitted Cosmetic Ingredients with Limitations and Usage Requirements, talc may be used in powder cosmetics for children and other preparations, with no maximum usage restrictions or other requirements, and in powder preparations for children, it must include a warning to "keep powder away from children's mouths and noses."

"The public does not need to worry because the Johnson & Johnson baby powder products notified to BPOM do not contain prohibited substances that can cause cancer," said BPOM's message.