P&G Wins Case Against Amway Distributors

3/21/2007

The Procter & Gamble Company (P&G) was awarded $19.25 million after winning a jury trial on March 16, 2007, in Federal District Court in Salt Lake City, Utah, against four Amway distributors for spreading false rumors about the company to advance their own business. P&G alleged that Amway Corp. distributors revived rumors in 1995 that P&G's logo -- a bearded, crescent man-in-moon overlooking a field of 13 stars -- was a symbol of Satanism, and used a voice mail system to tell thousands of customers that part of P&G profits went to satanic cults. P&G's claim was based on the Lanham Act, which prohibits unfair competition and false advertising. "This is about protecting our reputation," says Jim Johnson, P&G's chief legal officer. "We will take appropriate legal measures when competitors unfairly undermine the reputation of our brands or our company." In related moves last year, P&G took legal action against several companies for infringement of trade dress and trademarks, as well as false advertising.