December 17, 2008

Airborne Dietary Supplement Settles With 32 States For $7 Million

A $7 million settlement was reached between Airborne Health Inc. and 32 state attorneys general and the District of Columbia over the past marketing and labeling of its products.

The privately held company Airborne makes popular dietary supplements with vitamins, minerals and herbs that it claims help support the immune system

The settlement does not admit any wrongdoing by Airborne, which previously settled two matters involving similar claims.

Connecticut Attorney General Richard Blumenthal issued a statement on the settlement saying: "We're putting the dietary supplement industry on notice -- snake oil sales pitches will no longer be given free reign."

"Our strong coalition of states will continue to investigate and pursue companies that make false claims about dietary supplements and other products."

Airborne Founder and Chief Executive Victoria Knight-McDowell said the agreement would not impact Airborne's products "because it deals with language that had already been dropped from our advertising and labeling."

"Even though we believe the legal claims against Airborne were unjustified, we wanted to close the book on these legal and regulatory issues."

Airborne agreed to certain prohibitions against making claims over the benefits of its products, according to Blumenthal. He said the company also couldn't make demands on where a retailer puts its products in stores.

According to Blumenthal, Airborne also agreed not to market a product with directions that would result in a person ingesting 15,000 International Units of Vitamin A or more per day.

This marks the latest settlement from Airborne, who previously reached a $23.5 million settlement of a class action lawsuit and a $6.5 million settlement with the Federal Trade Commission.

Airborne said the FTC settlement funds would be paid only if the class action settlement does not cover all consumer claims submitted by September 18.


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Airborne Health Inc.