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Schering-Plough Healthcare Products, Inc. v. NEUTROGENA CORPORATION

Citations: 702 F. Supp. 2d 266; 2010 U.S. Dist. LEXIS 37393; 2010 WL 1404043Docket: Civ. No. 09-268-SLR

Court: District Court, D. Delaware; April 8, 2010; Federal District Court

Narrative Opinion Summary

This case involves Schering-Plough HealthCare Products, Inc. (plaintiff) and Neutrogena Corporation (defendant), who accused each other of false advertising under the Lanham Act and Delaware's Deceptive Trade Practices Act (DTPA). Schering-Plough challenged Neutrogena's advertisement that claimed superior sun protection, alleging it was misleading due to the presentation of UVA and SPF values, while Neutrogena countered with claims against Schering-Plough's advertisement of superior coverage. The court conducted a bench trial and applied standards for determining literal and implied falsity, requiring evidence of actual consumer deception for the latter. Schering-Plough failed to prove actual deception, and its testing methodologies were deemed unreliable for supporting coverage claims. The court found Neutrogena's advertisement literally false for implying distinct UVA and SPF protection levels, thus violating the Lanham Act and DTPA. Both parties' advertisements were criticized for being misleading, ultimately failing to assist consumers concerned with sun exposure risks. The court's decision emphasized the need for reliable, scientifically substantiated claims in advertisements to protect consumers from misleading information.

Legal Issues Addressed

Delaware Deceptive Trade Practices Act (DTPA)

Application: The court applied the DTPA to the alleged false advertising claims, noting that a successful Lanham Act claim would satisfy DTPA requirements.

Reasoning: The Delaware Deceptive Trade Practices Act (DTPA) prohibits false or misleading representations that may confuse consumers.

Implied Falsity and Consumer Perception

Application: The court required evidence of actual consumer deception for implied falsity, which the plaintiff failed to prove.

Reasoning: The plaintiff failed to prove actual consumer deception. The court also agreed with the defendant regarding the 'better coverage' claim in the CS commercial, stating that it is an establishment claim lacking reliable testing support.

Lanham Act - False Advertising

Application: The court evaluated whether the advertisements in question were literally false or misleading under the Lanham Act.

Reasoning: Under Section 43(a) of the Lanham Act, any false description or representation in advertising can lead to civil liability for damages.

Literal Falsity in Advertising

Application: The court found Neutrogena's advertisement literally false for presenting separate 'UVA' and 'SPF' measurements, misleadingly implying they were completely distinct.

Reasoning: The defendant's advertisement is deemed literally false because it inaccurately presents separate 'UVA' and 'SPF' measurements, misleadingly implying they are completely distinct when they are not.

Reliability of Scientific Evidence in Advertising Claims

Application: Plaintiff's in vivo and in vitro studies were scrutinized for reliability in supporting advertising claims about sunscreen coverage.

Reasoning: The court finds significant issues with the plaintiff's in vivo tests regarding Coppertone Ultra-Guard and Neutrogena Fresh Cooling Mist, determining they do not meet the reliability standard for Neutrogena Ultimate Sport.