10.01.08
Over the past decade, millions of consumers, including Oprah, have come to swear by Airborne—fizzy orange tablets containing vitamins, herbs and minerals that its makers for years said keeps cold germs at bay.
Airborne, however, when used as directed does not prevent class-action lawsuits, charges of deceptive advertising—or, according to the government, the common cold.
“There is no credible evidence that Airborne products…will reduce the severity or duration of colds, or provide any tangible benefit for people who are exposed to germs in crowded places,” said Lydia Parnes, director of the Federal Trade Commission’s Bureau of Consumer Protection, which filed a complaint against Airborne’s makers.
The remedy prescribed by the FTC is for Airborne to pay consumers back for as many as six purchases, a nationwide total of as much as $30 million.
Under a settlement announced yesterday (August 14), the privately held Airborne Health, based in Bonita Springs, Fla., will add $6.5 million to funds it has already agreed to pay to settle a related class-action lawsuit. That suit, which alleged that Airborne falsely claimed its products could cure or prevent colds, was settled earlier this year for $23.5 million. Consumers who bought Airborne products between 2001 and 2008 [had] until Sept. 15 to apply for a refund for as many as six purchases, the FTC said. Claims will be paid by Oct. 15, 2008, the company said in a statement.
Three of the FTC’s four commissioners voted to approve the deal. Commissioner Thomas Rosch dissented, saying the FTC should not have let Airborne use its existing inventory of paper cartons and display trays until Oct. 31, 2008, for fear of continuing to “perpetuate misperceptions” about the products.
—Annys Shin, The Washington Post, 8/15/08
Airborne, however, when used as directed does not prevent class-action lawsuits, charges of deceptive advertising—or, according to the government, the common cold.
“There is no credible evidence that Airborne products…will reduce the severity or duration of colds, or provide any tangible benefit for people who are exposed to germs in crowded places,” said Lydia Parnes, director of the Federal Trade Commission’s Bureau of Consumer Protection, which filed a complaint against Airborne’s makers.
The remedy prescribed by the FTC is for Airborne to pay consumers back for as many as six purchases, a nationwide total of as much as $30 million.
Under a settlement announced yesterday (August 14), the privately held Airborne Health, based in Bonita Springs, Fla., will add $6.5 million to funds it has already agreed to pay to settle a related class-action lawsuit. That suit, which alleged that Airborne falsely claimed its products could cure or prevent colds, was settled earlier this year for $23.5 million. Consumers who bought Airborne products between 2001 and 2008 [had] until Sept. 15 to apply for a refund for as many as six purchases, the FTC said. Claims will be paid by Oct. 15, 2008, the company said in a statement.
Three of the FTC’s four commissioners voted to approve the deal. Commissioner Thomas Rosch dissented, saying the FTC should not have let Airborne use its existing inventory of paper cartons and display trays until Oct. 31, 2008, for fear of continuing to “perpetuate misperceptions” about the products.
—Annys Shin, The Washington Post, 8/15/08