Wednesday, December 15, 2010

Dannon Settles Lawsuit

Dannon Settles Lawsuit - French-owned Dannon Co. has agreed to pay Texas and 38 other states $21 million and to drop misleading health claims for its bestselling product, Activia yogurt, which is made in three U.S. cities, including Fort Worth.

Activia cannot be pitched as a cure for digestive irregularity or as a way to protect against colon cancer, since no curative properties have been upheld by the Food and Drug Administration, Texas Attorney General Greg Abbott said in a statement.

"These types of misleading claims are enough to give consumers indigestion," said Jon Leibowitz, chairman of the Federal Trade Commission. "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."

Dannon Settles Lawsuit

Activia is one of the retail market's most successful probiotics, food items said to carry health benefits and now a fast-growing grocery category.

Dannon, which employs about 250 people in Fort Worth, denies wrongdoing. It settled to avoid the expense of litigation and to resume focus on making products with proven health benefits, spokesman Michael Neuwirth said.

Moreover, it will continue running TV commercials with actress Jamie Lee Curtis extolling Activia, Neuwirth said.

Dannon Settles Lawsuit

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