Johnson & Johnson v. Carter-Wallace, Inc.

Johnson & Johnson (J&J) (plaintiff) sold baby oil and lotion, some of which consumers used for shaving purposes, while Carter-Wallace, Inc. (Carter) (defendant) sold the hair-removal product NAIR, which it began marketing in 1977 with added baby oil, emphasizing that ingredient in its packaging and advertising; Carter's market share subsequently rose while J&J's baby-oil sales declined. J&J sued for false advertising seeking only injunctive relief, arguing Carter's ads falsely suggested NAIR-with-baby-oil made separate moisturizing products unnecessary, and presented evidence some consumers believed exactly that; after J&J's case, Carter moved to dismiss, and the district court granted the motion solely for failure to show damages, without reaching the falsity question, prompting J&J's appeal.