Dannon to Pay $21 Million Over Yogurt Health Claims

WASHINGTONDannon Company Inc., has agreed pay $21 million to settle claims with 39 states that the company made deceptive marketing claims for its Activia yogurt and DanActive drink products, the Federal Trade Commission (FTC) announced today. The food company has claimed that beneficial bacteria in its Activia yogurt helps relieve irregularity and that its DanActive drink boosts immunity.

Under the settlement, Dannon doesnt admit any wrongdoing, but it promises not to claim that Activia yogurt and DanActive dairy drinks can prevent, treat, cure or mitigate disease," and the firm is required to possess competent and reliable scientific evidence to support otherwise permissible claims about the health benefits, performance, efficacy or safety of its probiotic food products."

Dannon is prohibited from claiming that any yogurt, dairy drink, or probiotic food or drink reduces the likelihood of getting a cold or the flu, unless the claim is approved by FDA. Although companies usually do not need FDA approval of their health claims to comply with the FTC Act, the FTC determined in this case that requiring FDA approval will give Dannon clearer guidance going forward, and help ensure that it complies with the settlement order.

Dannon may not claim that Activia yogurt will relieve temporary irregularity or help with slow intestinal transit time, unless the claim is not misleading and the ad conveys that three servings of Activia yogurt must be eaten each day to obtain these benefits. Dannon may claim that eating fewer than three servings a day provides these benefits only if the company is relying on two well-designed human clinical studies substantiating that the claim is true.

Dannon may not claim that any other yogurt, dairy drink, or probiotic food or drink will relieve temporary irregularity or help with slow intestinal transit time unless the claim is not misleading and the company has two well-designed human clinical studies that substantiate the claim.

Dannon may not make any other claims about the health benefits, performance, or efficacy of any yogurt, dairy drink, or probiotic food or drink, unless the claims are true and backed by competent and reliable scientific evidence. Dannon also is prohibited from misrepresenting the results of any tests or studies.