Monday, August 18, 2008

Makers of Airborne Settle FTC Charges of Deceptive Advertising; Agreement Brings Total Settlement Funds to $30 Million
"Airborne Health, Inc., the Bonita Springs, Florida maker of the popular Airborne Effervescent Health Formula, an effervescent tablet marketed as a cold prevention and treatment remedy, 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. The FTC’s lawsuit also names Victoria Knight-McDowell, the former schoolteacher who invented Airborne, and her husband Thomas John McDowell. If the settlement is approved by the court, it will prohibit the defendants from making false and unsubstantiated cold prevention, germ-fighting, and efficacy claims. The monetary judgment will be satisfied by the defendants’ adding $6.5 million to the funds they have already agreed to pay to settle a related private class-action lawsuit, bringing the total settlement fund to $30 million."

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