Dannon forced to drop Activia yogurt hype

Dannon forced to drop Activia yogurt hype

Dannon will pay $21 million to settle allegations brought by 39 states, including Washington that it had illegally advertised its Activia yogurt as being able to help regulate "sluggish digestive systems," the state said Wednesday.

Washington state Assistant Attorney General Bob Lipson said Dannon had made up "fancy names" for the bacteria in its Activia yogurt products, and marketed them as having "unique health benefits."

The fancy names, trademarked by Dannon, are "Bifudus Regularis" and "L. casei Immunitas."

The Federal Trade Commission also announced a settlement with Dannon with the same concerns that did not require a payment. The attorneys general said some studies have shown that people with "sluggish digestive systems" who consumed three servings of Activia per day had a "modest benefit."

But officials said New York-based Dannon had marketed the yogurt to all consumers. It also said just one daily Activia serving for two weeks improved digestion, and it allegedly advertised its "DanActive" drink as providing "immunity" that can prevent a cold or flu. The company allegedly lacked adequate clinical proof to support that claim.

The case represents the largest settlement payment to date with a food manufacturer. Washington will get $425,000 of the payment.

In the settlement, Dannon denied the allegations but agreed to marketing restrictions. It can't say its Activia and DanActive products can prevent, treat, cure or mitigate disease, and must have "reliable scientific evidence" to support any other health claims about its probiotic foods.

Dannon had previously settled a private, class-action lawsuit in 2009, in which it agreed to create a $35 million fund to reimburse consumers who bought its products before April 24, 2010. The deadline to submit claims under that settlement was Oct. 1.

Neither the state nor federal settlement included restitution for individual consumers.

Vermont joins 38 other states involved in the settlement in which Dannon will pay $21 million nationwide.

The company had claimed that DanActive dairy drink helped people avoid colds or the flu and that Activia yogurt helps relieve digestive irregularity. But the Federal Trade Commission says there is not enough evidence to back those claims.

It says it has reached a settlement with the company that prohibits it from making such claims unless they are approved by the FDA.

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