White Plains, NY, September 18, 2009 – The Dannon Company, Inc. today announced the settlement of a class action lawsuit filed in January 2008 regarding advertising for its Activia and DanActive products.
Under the settlement, Dannon will make certain changes and enhancements to the labeling and marketing of Activia and DanActive to, among other things, increase the visibility of the scientific names of the unique strains of probiotics that are in each of these products. This information continues to be available on the products’ websites, along with the scientific substantiation for the health benefit claims. Dannon also agreed to create a fund of up to $35 million to reimburse qualified consumers for the cost of buying the products.
“The decision to settle this case is based on the Company’s desire to avoid the distraction and expense of litigation and to quickly resume 100 percent focus on making products that provide proven health benefits to millions of highly satisfied consumers. This resolves the plaintiff’s concerns while affirming the essence of the claims of Activia and DanActive, which are substantiated by years of scientific research,” said Michael Neuwirth, spokesperson for The Dannon Company.
Dannon is also cooperating with the Federal Trade Commission (FTC), which is currently reviewing similar claims. The FTC routinely reviews consumer advertising and Dannon is confident the matter will also be resolved soon.