Can Johnson's baby powder cause cancer? Recently, a report by Reuters claimed that Johnson's baby powder has traces of asbestos in it and the company knew it since 1971, yet kept the news hidden from the public. However, the company claims that the power is safe and asbestos-free, adding that even if it does contain the asbestos it doesn't mean it can is cancer causing. But since the news, the company's shares have plummeted by 10 percent and faces thousands of lawsuits. Earlier this year, the company was ordered to pay USD 4.7 billion in damages to women who had filed complaints that the powder had caused them ovarian cancer.