an equal and opposite reaction
Case Details for "The Dannon Co. Inc. "
Dannon Co. Inc. settles consumer fraud claim for $35 million
The Dannon Co. Inc. on Sept. 17 reached a $35 million settlement agreement that would resolve claims that it misrepresented the health benefits of some of its products
Under the terms of the agreement, Dannon agreed to make changes to the labeling and advertising of Activia and DanActive by increasing the visibility of the scientific names of the "probiotic" cultures in the yogurts. Dannon also agreed to remove the term "immunity" from its DanActive products. In addition, yogurt labels formerly stating that the yogurt has "a positive effect on your digestive tract's immune system" will be reworded to say the yogurt will "interact with your digestive tract's immune system."
The settlement class is defined as all persons who purchased in the United States food products marketed and distributed by Dannon under the brand names of Activia or DanActive, including variations, formats or line extensions thereof at any time up to date notice is provided to the class.
The proposed agreement establishes a settlement fund of $35 million. Class members may receive a maximum of $100 depending on how much yogurt they purchased. If the total amount of payouts is less than $35 million, Dannon will donate products having a total value equal to the difference between the actual payout amount and $35 million to various charities that help feed the poor.
Posted on:2009-10-02
Company: The Dannon Co. Inc.
Class: all persons who purchased in the United States food products marketed and distributed by Dannon under the brand names of Activia or DanActive, including variations, formats or line extensions thereof at any time up to date notice is provided to the class
Scope: Nationwide
Type of Case: Consumer
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