Friday, February 26, 2010

Dannon settles false advertising lawsuit over Activia, DanActive yogurt (Los Angeles Times)

Dannon Co. settled a false-advertising lawsuit Friday, agreeing to set up a $35-million fund to reimburse consumers who bought its Activia and DanActive yogurts(Olivarez-Giles).

The class-action lawsuit, filed in January 2008, alleged that Dannon lied when marketing its Activia and DanActive yogurts by trumpeting health benefits that didn't exist (Olivarez-Giles).

This is a case of false advertising. Activa and DanActive were said to help regulate digetive system based on the Probiotic bacteria that is found in the yougurts. They also said it will help replenish those healthy bacteria at an older age. However, there are no studies that indicate this is correct.

False advertsements do not benfit the company or the ad agency representing the product or service. Dannon Co. had to reimburse consumers who bought the product. Flase advertisement becomes a loss of profit and create a poor image for both the comapny and the ad agency.

1 comment:

Anonymous said...

This is terrible, I wonder if the same will happen with Yoplait's yogurt, Yo Plus that touts the same benefits. These companies are just getting ridiculous, it hurts you worse if you lie, just tell the truth, you sell regular old sugary yogurt!