Suit Filed over Dannon’s “Probiotic” Yogurt Claims

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January 24th, 2008

"Dannon's Claims About Yogurt Are Unsubstantiated"

Dannon Co. is being targeted in a proposed class action lawsuit over claims it misled the public about the health benefits of its “probiotic” yogurts.

Company Boasts Benefits, Charges More

According to the consumer fraud lawsuit, Dannon mounted a huge marketing campaign to convince consumers that its Activia, Activia Lite and DanActive brand yogurts were scientifically proven to have benefits over other yogurts and then charged 30 percent more.

The packaging of Activia boasts the benefits of “bifidus regularis,” an ingredient the company claims “helps naturally regulate your digestive system,” and the dairy drink DanActive is touted for its ability “to strengthen the body’s defenses when consumed daily.”

Attempt to Boost Sales

Dannon knew such claims were unsubstantiated, the lawsuit contends. The company is accused of launching the massive campaign to help boost sales of its products in the U.S.

The “probiotic” products are expected to make up about 40 percent of the company’s total sales in the U.S. this year, said Dannon’s chief executive officer Juan Carlo Dalto in a statement to Reuters.

The Lawsuit

Attorneys filed the lawsuit on Wednesday in a Los Angeles federal court. The suit seeks to reimburse consumers who purchased DanActive, Activia, or Activia Lite. It also asks that Dannon be required to launch “a corrective advertising campaign.”

(Source: Reuters)

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