Get 40% Off
👀 👁 🧿 All eyes on Biogen, up +4,56% after posting earnings. Our AI picked it in March 2024.
Which stocks will surge next?
Unlock AI-picked Stocks

Gillette sues Schick maker over claims for Mach3 rival

Published 08/23/2016, 02:27 PM
Updated 08/23/2016, 02:30 PM
© Reuters. Gillette razors are seen on racks at a Carrefour hypermarket in Nice

By Jonathan Stempel

NEW YORK (Reuters) - Procter & Gamble Co's (N:PG) Gillette unit on Tuesday sued the maker of Schick razors, claiming it falsely marketed a line of private label three-blade razors and cartridges as being equal to or better than its popular Mach3.

Gillette said tests of men aged 18 to 55 showed that razors from Edgewell Personal Care Co (N:EPC) created a "statistically significant number of greater nicks and cuts," and thus were not "as good or better than Mach3," as their labels claim.

"By falsely promoting its razor as being 'as good or better' than Mach3 and providing reduced irritation as compared to Mach3, Edgewell's actions threaten harm to Gillette's reputation and that of Mach3, thus jeopardizing Gillette's hard-earned standing and market share," the complaint said.

The complaint filed in Manhattan federal court also said that the "many months" of lead time needed for Edgewell's June rollout of its shaving products meant that company had to infringe three patents for the Mach3 that expired on April 10.

Gillette dominates the retail market for men's razors and blades, where it can charge higher prices for premium brands such as Mach3 and Fusion. But it faces pressure from lower-cost rivals and online sales.

The lawsuit seeks unspecified damages, a halt to alleged false advertising and royalties for products sold under such names as Blade, Daylogic and Equate, and by Kroger Co (N:KR).

Edgewell did not immediately respond to requests for comment.

According to the complaint, Edgewell told Gillette that its claims for the private label razors were based on a "well conducted product test" and had offered to substantiate the "as good or better" claim to retailers that asked.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Shaving products, including Schick, Wilkinson Sword and Edge, account for more than half of Edgewell's profit and revenue.

The company also sells Banana Boat and Hawaiian Tropic sunscreen, as well as tampons and other feminine care products under such brands as Playtex and Stayfree.

Edgewell, based in Chesterfield, Missouri, was spun off in July 2015 by battery maker Energizer Holdings Inc (N:ENR). Gillette is based in Boston, and P&G in Cincinnati.

The case is Gillette Co v Edgewell Personal Care Co, U.S. District Court, Southern District of New York, No. 16-06623.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.