News > Client

Airborne, FTC Reach Settlement

Company agrees to pay up to $30 million to settle case over the advertising and labeling of its products

Aug 14, 2008

-By Barry Janoff, Brandweek


adweek/photos/stylus/36033-Airborne.jpg

Airborne has denied wrongdoing or illegal conduct.

NEW YORK The company that manufactures Airborne, described as a dietary supplement whose vitamins and minerals help support the immune system, has settled its case with the Federal Trade Commission over the advertising and labeling of its products.

According to the FTC, Airborne, Bonita Springs, Fla., "Has agreed to pay up to $30 million to settle Federal Trade Commission charges that it did not have adequate evidence to support its advertising claims in which its effervescent tablet was marketed as a cold prevention and treatment remedy."

Airborne has denied wrongdoing or illegal conduct, but reached an agreement with the FTC and agreed to settle a class action lawsuit "to avoid continued expense and distraction from management of the business," according to a statement released by the company.

The FTC's complaint stated that there was "no competent and reliable scientific evidence to support the claims made by the [company] that Airborne tablets can prevent or reduce the risk of colds, sickness, or infection; protect against or help fight germs; reduce the severity or duration of a cold; and protect against colds, sickness, or infection in crowded places such as airplanes, offices or schools."

The FTC complaint also stated company founders Victoria Knight-McDowell and Thomas John McDowell,"made false claims that Airborne products are clinically proven to treat colds."

In a statement, Airborne CEO Elise Donahue said: "Consumers can feel confident that the advertising and labeling going into the marketplace accurately reflects what Airborne products do. Our products help support the immune system . . . [Airborne] continues to be the No. 1-selling immune support dietary supplement, and we're very proud of this fact."

Donahue stressed: "It's important to note that this is a settlement over older advertising and labeling and has nothing to do with public safety. We've offered a money-back guarantee for our products since 1997 and we have millions of satisfied customers."

The FTC said: "In addition to prohibiting the defendants from making claims that are false, misleading, or unsubstantiated by competent and reliable scientific evidence, and providing additional funds for consumer redress, the [settlement] authorizes the [FTC] to monitor the defendants' compliance with the order."


Airborne, FTC Reach Settlement

Company agrees to pay up to $30 million to settle case over the advertising and labeling of its products

Aug 14, 2008

-By Barry Janoff, Brandweek


adweek/photos/stylus/36033-Airborne.jpg

Airborne has denied wrongdoing or illegal conduct.

NEW YORK The company that manufactures Airborne, described as a dietary supplement whose vitamins and minerals help support the immune system, has settled its case with the Federal Trade Commission over the advertising and labeling of its products.

According to the FTC, Airborne, Bonita Springs, Fla., "Has agreed to pay up to $30 million to settle Federal Trade Commission charges that it did not have adequate evidence to support its advertising claims in which its effervescent tablet was marketed as a cold prevention and treatment remedy."

Airborne has denied wrongdoing or illegal conduct, but reached an agreement with the FTC and agreed to settle a class action lawsuit "to avoid continued expense and distraction from management of the business," according to a statement released by the company.

The FTC's complaint stated that there was "no competent and reliable scientific evidence to support the claims made by the [company] that Airborne tablets can prevent or reduce the risk of colds, sickness, or infection; protect against or help fight germs; reduce the severity or duration of a cold; and protect against colds, sickness, or infection in crowded places such as airplanes, offices or schools."

The FTC complaint also stated company founders Victoria Knight-McDowell and Thomas John McDowell,"made false claims that Airborne products are clinically proven to treat colds."

In a statement, Airborne CEO Elise Donahue said: "Consumers can feel confident that the advertising and labeling going into the marketplace accurately reflects what Airborne products do. Our products help support the immune system . . . [Airborne] continues to be the No. 1-selling immune support dietary supplement, and we're very proud of this fact."

Donahue stressed: "It's important to note that this is a settlement over older advertising and labeling and has nothing to do with public safety. We've offered a money-back guarantee for our products since 1997 and we have millions of satisfied customers."

The FTC said: "In addition to prohibiting the defendants from making claims that are false, misleading, or unsubstantiated by competent and reliable scientific evidence, and providing additional funds for consumer redress, the [settlement] authorizes the [FTC] to monitor the defendants' compliance with the order."
Post a Comment
Asterisk (*) is a required field.
* Author:
* Comment:
 

Other Client News

subway

Subway Signs Michael Phelps

November 21, 2008

NEW YORK Move over Jared, here comes Michael Phelps. Subway, the largest franchised restaurant in the world, announced a long-term partnership with the Olympic gold medalist. Read Full Article



Our ProductsOur Products

ADWEEK'S NIGHTLY NEWS

Receive a comprehensive roundup of the biggest stories of the day.

BREAKING NEWS ALERTS

Sign up to be the first to hear about the biggest breaking news stories.

SUBSCRIBE

Stay connected to what's happening in the advertising industry with delivery of the print edition and complete online access.

More VideosVideo



From print to online advertising trends, advertising professionals can read all about the latest advertising news at Adweek. Keep on top of the latest happenings in the advertising world, from online video advertising to the latest funny TV commercials. Check out our community and advertiser forums to discover and network with other advertiser and marketing professionals. Adweek provides advertisers with daily TV news and weekly ad industry editorials on a complete array of subjects. Use our advertising agency directory to find a career opportunity or to research an ad agency to fit your companies advertising and marketing needs. Explore Adweek everyday, or sign up for our Adverting Newsletter to get the latest ad industry news on demand!

Adweek Advertising Home | Advertising Industry News | Creative TV Advertising | Advertising Industry Community | Video Advertising | Advertising Data Center | Advertising Special Reports | Advertising Careers | Advertising Products | Advertising About Us | Advertising Business Statements | Advertising Contact Us | Advertising Opportunities | Ad Licensing | Advertiser FAQ | Advertising Magazine Subscriptions | Advertising News RSS | Online Ad Site Map | Mobile

© 2008 Nielsen Business Media, Inc. All rights reserved. Terms of Use  |   Privacy Policy