Following complaints from thousands of consumers, New York State attorney-general Dennis Vacco launched an investigation into allegations that Procter & Gamble colluded with other fmcg companies and a retail chain to deprive NY citizens of their inalienable right to enjoy the same savings offered to shoppers elsewhere in the US. Says Mr Vacco: 'Many shoppers, including the elderly, families with young children and those with limited budgets, rely on coupons to save money on their grocery bills.' In February 1996 P&G embarked on a year's trial to eliminate coupons for its brands across the state. The trial was joined by Colgate-Palmolive, Pillsbury, Reckitt & Colman, six other fmcg companies and Wegmans Food Markets; resultant savings were redirected into other forms of promotion. The marketers, however, hadn't reckoned on the intensity of the resulting consumer backlash - and P&G and the others have now agreed $4.2m 'without predjudice' compensation to shoppers in the form of - money-off coupons! Denying collusion, P&G said the settlement had been made 'to avoid protracted litigation'.
© Copyright 2017
All rights reserved including database rights. This electronic file is for the personal use of authorised users based at the subscribing company's office location. It may not be reproduced, posted on intranets, extranets or the internet, e-mailed, archived or shared electronically either within the purchaser's organisation or externally without express written permission from WARC.