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Dannon Settles Health Benefits Action for $21 Million

Portland, OR: Dannon Co Inc, has agreed to pay $21 million to settle claims that its DanActive drink and Activia Yogurt help boost a person's immune system and relieve irregularity. The charges were brought by federal regulators who allege there is not enough evidence to support Dannon's claims currently stated on the products' packaging and in their marketing campaigns.

Attorneys General from 39 states brought the case, which is the largest attorney general consumer protection multi-state settlement ever reached with a food producer, MSNBC.com reported today.

The two lead states, Oregon and Tennessee, will receive $1.06 million under the agreement and the remainder of the money will be divided among 3 other states.

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Last updated on Dec-15-10