Cincinnati, USA - Procter & Gamble, the world's largest consumer products company, has won $19.25 million in a civil lawsuit against four former Amway distributors who were accused of spreading false rumors linking the company to Satanism.
A U.S. District Court jury in Cincinnati found in favor of P&G on Friday in the 1995 lawsuit, one of several the company brought over rumors alleging a link between the company's logo and Satanism.
Rumors began circulating as early as 1981 that the company's logo — a bearded, crescent man-in-the-moon looking over a field of 13 stars — was a symbol of Satanism.
The company alleged that Amway distributors revived those rumors in 1995, using a voice mail system to tell thousands of customers that part of Procter & Gamble profits went to Satanic cults.
Amway, based in Michigan, is involved in direct selling through independent business owners in more than 80 countries and territories around the world.
The company's claim was based on the Lanham Act, which prohibits unfair competition and false advertising.
"This is about protecting our reputation," Jim Johnson, P&G's chief legal officer, said Monday. "We will take appropriate legal measures when competitors unfairly undermine the reputation of our brands or our company."
The former Amway distributors thought they would be exonerated and were shocked by the jury's verdict late Friday, said Randy Haugen, one of the defendants.
"It's hard to imagine they'd pursue it this long, especially after all the retractions we put out," said Haugen, a 53- year-old businessman who maintained that P&G was never able to show how it was harmed by the rumors. "We are stunned. All of us."
Haugen said he forwarded another person's account of the Satanic rumor to other Amway salesmen on a common phone-message system, then circulated the retraction. The original message, however, found its way to Procter & Gamble.
Amway has said it acted quickly to quash the rumor and was dismissed from the case, leaving the four former distributors, who are protected by company insurance against the judgment, Haugen said.
A federal judge had dismissed the lawsuit involving Amway, and a three- judge panel of the U.S. Circuit Court of Appeals agreed in 2003, saying the rumors were not defamatory and that P&G had not made a case for specific damages.
P&G, however, got the case reinstated on a further appeal, Haugen said.