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Yogurt Makers Forced to Dish Out Hefty Settlement

We’ve all seen the commercials dozens of times.  They're for a so-called "wonder yogurt" that promises to simultaneously work gastric miracles while helping to strengthen the immune system.  

DanActive and Activia, yogurt products made by the Dannon Corporation, hired Hollywood star Jamie Lee Curtis to appear in their television commercials.  In the spots, she is shown talking to women and men about the benefits of this specialty, higher priced yogurt.  These commercials tell consumers that the yogurt has been “clinically" tested and “scientifically proven.” Recently, "Saturday Night Live" spoofed the ads, suggesting that the benefits claimed by the wonder yogurt seemed too good to be true.   

Well, late last month, a Cleveland federal court decided that Dannon’s claims were precisely that.  In a class action lawsuit, the court ruled that the yogurt company must pay consumers up to $45 million in damages for false advertising. The settlement was reached under the ruling that the company’s advertising claims were dishonest and that the health benefits of the products have never been proven. Dannon has subsequently been ordered to remove the word "immunity" from DanActive’s labels as well as a qualifier that the yogurt “helps support the immune system,” a statement that appears along with “when eaten regularly as a part of a balanced diet and healthy lifestyle.” The company has also been ordered to remove the words “clinically” and “scientifically proven” from labels and advertisements for the Activia line of products.  

To facilitate the dispersal of the $45 million dollar settlement, Dannon has set up a website which will walk consumers through a process for receiving refunds of up to $100. Whatever funds are left unclaimed will be donated to charities. The company’s website also has information regarding the exact benefits of all its yogurt products while noting that yogurt cannot be used in place of a doctor or as a treatment.

Related:  website for filing a class action claim with Dannon

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