Regulator raps Johnson & Johnson for presence of cancer-causing substance in 'No More Tears' baby shampoo

US healthcare major Johnson & Johnson (J&J) has landed in trouble yet again with Indian health regulators as its famous 'No More Tears' baby shampoo was found to have a cancer-causing substance in quality tests conducted by Drug Control Organisation of Rajasthan.

Two batches of the shampoo manufactured at J&J's facility in Baddi, Himachal Pradesh, reportedly contained formaldehyde more than stated by the company.

The Rajasthan drug controller issued a notice on March 31 saying that shampoo bottles from these batches must be taken off the shelves. In the notice, the authority mentioned that particular samples are "not of standard quality".

A J&J spokesperson dismissed the reports saying that the company does not accept interim results. "The government did not disclose the test methods, details or any findings. This is concerning, especially when there is no prescribed test method for testing formaldehyde. We have confirmed to the Indian authorities that we do not add formaldehyde as an ingredient in our shampoo," the person added.

The New York Times had reported in January 2014 of a similar crisis, when J&J had to overhaul its shampoos and other products after consumers raised concerns about formaldehyde in its products.

This comes shortly after Johnson's baby powder was under the regulatory lens for possibly having asbestos, another cancer-causing substance. Just last month, government agencies gave it a green light to resume the powder's production.

The government started testing other products from J&J after a report by Reuters alleged that the company was aware of the carcinogens in its products but hid the information from the public.

J&J recently had to shell out a compensation worth Rs 74 lakh to a victim of the company's faulty hip implants. These implants reportedly led to subsequent surgeries for patients, some of whom were badly injured.