As part of its ongoing effort to stop false and unsubstantiated health claims, FTC has settled two separate cases with major companies. In one case, a subsidiary of Nestlé S.A. has agreed to drop allegedly deceptive advertising claims about the health benefits of its children’s drink BOOST Kid Essentials. In a second case, Iovate Health Sciences U.S.A. will pay $5.5 million to settle charges it falsely advertised that its supplements could help consumers lose weight and treat or prevent colds and other illnesses.

In the Nestle case, the FTC complaint charged that from fall 2008 to fall 2009, Nestlé HealthCare Nutrition, Inc. made deceptive claims in television, magazine and print ads that BOOST Kid Essentials prevents upper respiratory tract infections in children, protects against colds and flu by strengthening the immune system, and reduces absences from daycare or school due to illness.

BOOST Kid Essentials is a nutritional drink intended for children ages 1 to 13. The probiotics in BOOST Kid Essentials are embedded in a straw that comes with the drink, which was prominently featured in ads for the product. FTC charged that the ads falsely claimed BOOST Kid Essentials is clinically shown to reduce illness in children, to protect from colds and flu by strengthening the immune system, and to help children up to age 13 recover more quickly from diarrhea.

Under the proposed settlement, Nestlé HCN has agreed to stop claiming that BOOST Kid Essentials will reduce the risk of colds, flu and other upper respiratory tract infections unless the claim is approved by FDA. Although FDA approval of health claims generally is not required for compliance with the FTC Act, in this case, the FTC determined that requiring FDA approval before Nestlé HCN makes claims that certain products prevent or reduce the risk of upper respiratory tract infections will provide clearer guidance. In turn, this will facilitate Nestlé HCN’s compliance with the proposed settlement order and will make the order easier to enforce.

Nestlé HCN has also agreed to stop claiming that BOOST will reduce children’s sick-day absences and the duration of acute diarrhea in children up to age 13, unless the claims are true and backed by at least two well-designed human clinical studies. The FTC’s proposed settlement also prohibits Nestlé HCN from making any claims about the health benefits, performance or efficacy of any probiotic and nutrition drinks that it sells at retail, unless the claims are true and backed by competent and reliable scientific evidence. It also bars the company from misrepresenting any tests or studies.

As for the Iovate case, the $5.5 million will be used for refunds to consumers who purchased Accelis, nanoSLIM and any Cold MD, Germ MD and Allergy MD product. These supplements were sold over the Internet and were widely available at retail stores. The settlement requires the marketer to stop making deceptive health claims about the products.

Using photos of white-coated individuals depicted as medical doctors, Iovate’s ads claimed that Cold MD and Germ MD treat or prevent colds and flu, and that Allergy MD treats or prevents allergies and hay fever, according to the FTC complaint. Some ads also proclaimed the products’ effectiveness was clinically proven. The FTC complaint alleges these claims were false and unsubstantiated.

Like the Nestle case, the FTC determined that requiring FDA pre-approval before the defendants make disease claims for dietary supplements and drugs will provide clearer guidance that will facilitate the defendants’ compliance with the FTC order and make the order easier to enforce.