Airborne Health, Inc. has agreed to an increased settlement totaling $30 million in a class action lawsuit and in response to charges brought by the Federal Trade Commission (FTC) of false advertising and labeling relating to its cold prevention products. Airborne originally agreed to a settlement of $23.5 million in customer refunds and attorneys’ fees, which is awaiting approval in California. The FTC agreement, if approved, will prohibit Airborne from “making claims that are false, misleading, or unsubstantiated by competent and reliable scientific evidence” and require the company to provide additional funds for consumers. Under the agreement with the FTC, Airborne must submit refunds to consumers in a timely manner and will have until December 31, 2009 to pay at least the amount of the original settlement to settle any other similar lawsuits, or Airborne must pay the FTC the total settlement amount for it to establish its own consumer redress program.

While the FTC claims “[t]here is no credible evidence that Airborne products, taken as directed, will reduce the severity or duration of colds, or provide any tangible benefit for people who are exposed to germs in crowded places,” Airborne claims it no longer uses the ads and labels that are the subject of the charges and its website refers to several studies showing the positive effects of its products on the immune system.

Source: http://www.ftc.gov/opa/2008/08/airborne.shtm
http://www.foxnews.com/story/0,2933,404442,00.html
http://www.airbornehealthsettlement.com/