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Consumer Reports' Reputation Takes Hit
On Friday, American Suzuki spokesman Mike Anson refused to comment on that case or Consumer Reports' new troubles.
A similar uproar erupted from the magazine's finding that the 1995-1996 Isuzu Troopers were prone to tip over. In 2000, a jury found that seven statements in the magazine article were untrue and one was published with reckless disregard for the truth. However, it did not order any monetary damages. Isuzu had claimed $244 million in losses.
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In 2004, The Sharper Image Corp. sued Consumer Reports for libel, claiming an unfavorable review of an Ionic Breeze air purifier was false and malicious. The case was dismissed and Sharper Image had to pay Consumer Reports' costs.
Two months after the case ended, the magazine issued another review of the air purifier, criticizing it again. Spokesman Patrick Lenihan said Friday that Sharper Image would not comment on Consumer Reports.
In a regulatory filing Friday, Sharper Image disclosed a class-action settlement in which it offered more than $19 million in store credits and discounts to the more than 3 million people who bought the air purifier.
In 2000, Korbel Champagne Cellars decided that the magazine's "good" rating was not good enough. Its lawsuit accused Consumer Reports of "false, misleading, defamatory and disparaging comments." The magazine called the lawsuit "grotesque" and filed for dismissal. Korbel withdrew.
The dog food article apparently did not result in a lawsuit. Consumers Reports reported in 1998 that some dog foods lacked essential nutrients. It backed off soon after, and an official said there was "a systemic error in the measurements of various minerals we tested _ potassium, calcium and magnesium."
Last year's April issue said that while hybrid gas-electric cars and trucks can save fuel, the higher prices and depreciation costs meant none of them were cheaper than their gas-guzzling counterparts over a five-year period. When the arithmetic of the depreciation costs was corrected, the Honda Civic and Toyota Prius hybrids came out slightly ahead.
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