Facing charges of deceptive advertising for its Activia yogurt and DanActive dairy drink, the Dannon Company has reached a settlement with FTC. As a result, the company will stop claiming that one daily serving of Activia relieves irregularity and that DanActive helps people avoid catching colds or the flu. Dannon has also agreed to pay $21 million to resolve investigations into its advertising from 39 state attorneys general. However, Dannon said it does not admit any wrongdoing. As part of its ongoing efforts to make sure that marketers do not overstate the health benefits of their products, the FTC charged that Dannon’s ads were deceptive because the company did not have substantiation for its claims.

“These types of misleading claims are enough to give consumers indigestion,” said FTC chairman Jon Leibowitz. “Consumers want, and are entitled to, accurate information when it comes to their health. Companies like Dannon shouldn’t exaggerate the strength of scientific support for their products.”

Under the settlement, Dannon is prohibited from claiming that any yogurt, dairy drink or probiotic food or drink reduces the likelihood of getting a cold or the flu, unless the claim is approved by FDA. Although companies usually do not need FDA approval of their health claims to comply with the FTC Act, the FTC determined in this case that requiring FDA approval will give Dannon clearer guidance going forward, and help ensure that it complies with the settlement order.

Dannon may not claim that Activia yogurt will relieve temporary irregularity or help with slow intestinal transit time, unless the claim is not misleading and the ad conveys that three servings of Activia yogurt must be eaten each day to obtain these benefits. Dannon may claim that eating fewer than three servings a day provides these benefits only if the company is relying on two well-designed human clinical studies substantiating the claim.