The lawsuit also claims Johnson & Johnson knew a key drug in its medicines did not work.
Pharmaceutical giant Johnson & Johnson is facing one of New Zealand’s largest ever class actions alleging the company sold ineffective cold and flu medicines.
At issue are popular brands marketed in New Zealand under the names Codral, Benadryl, Day & Night, and Sudafed, which contain a substance called phenylephrine or PE.
Lawyers for the plaintiffs, JGA Saddler, say the company marketed these brands as an effective nasal decongestant for around 20 years, and is seeking anyone who bought one of the products between 2005 and 2025 to join the action.
“Millions of New Zealanders expecting to be able to ’soldier on with Codral’ [a well-known jingle from its advertising campaigns] and other cold and flu medicines may be shocked to learn the over-the-counter products’ key ingredient is ineffective when taken orally,” said JGA Saddler Director Rebecca Jancauskas.
“It’s a case of Johnson & Johnson putting profit before people.”
Phenylephrine has been marketed as an effective substitute for pseudoephedrine after medications containing the latter substance were restricted in New Zealand in 2011 following concerns over its use in the manufacture of illicit drugs. New laws meant it could only be purchased with a prescription.
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In May 2024, pseudoephedrine-based cold and flu medications became available for over-the-counter purchase without a prescription, as part of the coalition agreement and at the urging of the ACT Party. However, a consultation with a pharmacist is required.
FDA Says Pseudoephedrine Ineffective, Lawsuit Alleges Johnson & Johnson Knew
Last year, America’s Food and Drug Administration (FDA) announced that it was proposing to remove oral phenylephrine as an active ingredient that can be used in over-the-counter drug products for the temporary relief of nasal congestion “after an agency review of the available data determined that [it] is not effective for this use.”
JGA Saddler alleges Johnson & Johnson knew that well before the FDA reached its conclusion, though they could not say for how long.
When inhaled as a nasal spray, phenylephrine effectively treats nasal congestion by making the blood vessels in the nose narrower, reducing blood supply. However, a growing body of evidence has revealed that less than 1 percent of the drug is absorbed when taken orally.
JGA Saddler Director Rebecca Jancauskas with some of the products the firm claims are ineffective. Courtesy of JGA Saddler
“Johnson & Johnson has manufactured and marketed a medication that decades of evidence have shown doesn’t work as claimed,” Jancauskas said, accusing the company of “relying on outdated, fallible studies to sell the New Zealand public products that don’t do what they say on the packet.
“New Zealanders have trusted these products to work as advertised and wouldn’t have bought them if they knew they were ineffective at treating congestion. Johnson & Johnson has misled the public and they need to be held accountable for their actions.”
The action has the support of Consumer NZ.
“Large multinational companies with ample resources have no excuse for misleading consumers about the efficacy of their products,” said the organisation’s Chief Executive Jon Duffy.
“Consumers are especially vulnerable when they are unable to test product claims themselves and when it comes to products in the health space, it’s critical that consumers can rely on the claims manufacturers make.”
“Companies must be held to account if they are found to breach the Consumer Guarantees and Fair Trading Acts.
“Until it can be shown that these products are effective, Consumer NZ recommends consumers stop using them and encourages anyone impacted to join the class action. We’re also calling for sales of these products to be halted until the efficacy of the claims can be independently verified,” Duffy said.
This case is backed by global litigation funder Omni Bridgeway and is being run on a “no win no fee” basis, which means there are no upfront costs for those involved in the claim.
The Epoch Times has contacted Johnson & Johnson for comment.
