Dannon Agrees To Drop Health Claims, Pay $21 Million

Karlene Lukovitz, Dec 15, 2010 02:16 PM

In response to Federal Trade Commission charges of deceptive advertising, The Dannon

Company, Inc. has agreed to drop certain health claims from its marketing for Activia and
DanActive probiotic yogurts.

Dannon, owned by French food giant Groupe Danone, also agreed to pay $21 million to settle
with 39 states that have been working with the FTC -- the largest multi-state attorney general
consumer protection settlement ever reached with a food manufacturer, reported Associated Press.
The two states that led the marketing claims charges, Oregon and Tennessee, will receive $1.06
million; the rest will be divided among the remaining states.

The FTC's complaint, filed at the same time as the settlement, charged that Dannon's advertising
made unsubstantiated claims that DanActive helps prevent colds and flu, and that a single daily
serving of Activia relieves temporary irregularity and helps speed intestinal transit time.

Among the ads cited as deceptive by the FTC were Activia's TV ads featuring actress Jamie Lee
Curtis that say Activia is "clinically proven to help regulate your digestive system in two weeks,"
and a DanActive TV ad showing a sick-looking boy perking up after drinking the yogurt that
states that DanActive is "clinically proven to help strengthen your body's defenses."

The FTC said that Dannon not only lacked substantiation for these claims, but also engaged in
deceptive marketing by stating that the claims were clinically proven.

"These types of misleading claims are enough to give consumers indigestion," said FTC chairman
Jon Leibowitz, in announcing the complaint and its settlement. "Consumers want, and are entitled
to, accurate information when it comes to their health. Companies like Dannon shouldn't
exaggerate the strength of scientific support for their products."

Under the FTC settlement, Dannon agrees not to claim that any yogurt product reduces the
likelihood of getting a cold or the flu unless the claim is approved by the Food and Drug
Administration (the company has said it never made a cold/flu prevention claim), and not to make
the regularity/intestinal claims about Activia or other probiotic foods or beverages unless it is
clearly conveyed that three servings of the yogurt per day must be eaten to realize these benefits.

In a statement, the company said that "millions of people firmly believe in, benefit from and enjoy
these products," and that Dannon will continue to "research, educate and communicate about the
benefits of probiotics on the digestive and immune systems."
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