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The maker of the popular Airborne supplement, Airborne Health Inc. of Bonita Springs, Fla., will pay $30 million to settle a false advertising lawsuit, according to the Federal Trade Commission.
FTC director of the Bureau of Consumer Protection Lydia Parnes argues that there is no actual evidence that Airborne will reduce the severity or duration of colds. The FTC blasted former teacher Victoria Knight-McDowell, who invented the Airborne Formula, for allegedly having falsely claimed her company's Airborne products were clinically proven as cold treatments.
There is allegedly no tangible benefit for people who are exposed to germs in crowded places, the government said. Airborne shot back, saying that the FTC charges deal with advertising and labeling that the company no longer uses, claiming that the company is just one of many major consumer brands across the United States that are under assault by class action lawyers.
The FTC ruling adds $6.5 million to a previous class action settlement, pending approval in federal court in California, in which Airborne agreed to pay $23.5 million in customer refunds and attorney fees.
Meanwhile, many Airborne customers were surprised by the announcement. The company offers a money-back guarantee for their products since 1997, and many of its customers believe the product actually helped them substantially fight off colds. Its formula contains herbal extracts, amino acids, antioxidants, electrolytes, synthetic vitamins, and other ingredients.
The company's sales were boosted significantly after its maker, Victoria Knight-McDowell, appeared on "The Oprah Winfrey Show" in 2004.
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