Monday, September 29, 2008
Airborne Pays $30 Million To Settle FTC Charge of False Advertisements
Post by Mahala Gaylord
photo by NAM Y HUH/AP ©2005
The Federal Trade Commission charged the makers of Airborne, a company which makes cold-prevention medicine, with the use of false and unsubstantiated claims about their product in advertisements and on their label. A class action lawsuit is pending in the U.S. District Court for the Central District of California.
"The FTC charged that the makers of Airborne, former teacher Victoria Knight-McDowell and her husband, made express or implied unsubstantiated claims that the product could reduce the risk of or prevent colds, protect against or help fight germs, reduce the severity or duration of a cold, and protect against colds, sickness and infection in crowded places." as stated in an article on adlawbyrequest.com.
“There is no credible evidence that Airborne products, taken as directed, will reduce the severity or duration of colds, or provide any tangible benefit for people who are exposed to germs in crowded places,” said Lydia Parnes, Director of the FTC’s Bureau of Consumer Protection in a release.
Airborne agreed to pay $26.5 million in refunds and an additional $6.5 million to redress customer claims according to adlawbyrequest.com.
Although Airborne is paying a settlement, the company denies any wrongdoing or illegal activity. Airborne made a statement reassuring its customers that Airborne does indeed work.
“Consumers can feel confident that the advertising and labeling going into the marketplace accurately reflects what Airborne products do,” said Airborne CEO Elise Donahue, according to adlawbyrequest.com.
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