Thursday, August 21, 2008

Makers of Airborne Settle FTC Charges of Deceptive Advertising; Agreement Brings Total Settlement Funds to $30 Million

Airborne Health, Inc., the maker of the popular Airborne Effervescent Health Formula, marketed as a cold prevention and treatment remedy, has agreed to pay up to $30 million to settle Federal Trade Commission (FTC) 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. 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. Consumers Have Until September 15 to Apply for Refunds.

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