Dannon Co. Agrees For Settlement
September 19th, 2009 - 7:29 pm ICT by GDBy Madhuri Dey
According to the sources, the company Dannon Co. has agreed to reimburse its consumers for up to $100 of Activia and DanActive yogurt purchases. The company had been reportedly accused of falsely advertising its health benefits to the consumers, the benefits which actually didn’t exist.
Sources have also revealed that the company has chalked out a plan in order to change its marketing and selling strategies in order to settle a class-action lawsuit that has been filed against them.
The company has set up a fund of $35 million in order to reimburse its customers, who have blamed that the company has been falsely blowing up its health related benefits over the years. The lawsuit which had been filed in the year 2008 alleges Dannon for falsely claiming that the products can strengthen the body’s defense metabolism or can regulate digestion because of the bacteria contained in the products. White Plains, N.Y. based Dannon, has reportedly denied of any wrongdoings and said that they agreed to the terms pitted against them in order to avoid any further litigation and expenses. Inside sources reveal that the aforementioned settlement still need to be approved by the US District Court.
Dannon has agreed to change its marketing and advertising strategies by putting in more scientific terms and increasing the visibility of scientific names of the ingredients contained in the yogurt. The company also agreed to remove the misinterpreted word “immunity” from its DanActive products.
In order to receive the refund, the consumers have to fill up a form which will only be available when the US District Court approves the settlement.
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Tags: activia, advertising strategies, bacteria, class action lawsuit, consumers, danactive yogurt, dannon co, dey, health benefits, immunity, litigation, madhuri, marketing, metabolism, scientific names, selling strategies, us district court, visibility, white plains