Dannon to Pay $21 Million to Settle Charges It Overstated Yogurt's Health Benefits

A sweeping investigation into Dannon's nationwide marketing of its Activia and DanActive brands has resulted in the yogurt giant's agreeing to pay $21 million to 39 states to settle charges of deceptive advertising of its dairy products' health benefits.

The settlement, announced simultaneously by the Federal Trade Commission and by state attorneys general, resolves allegations that Dannon exaggerated the benefits to consumers of two popular products that contain bacteria known as probiotics. According to the FTC complaint, Dannon claimed its DanActive dairy drink could prevent colds and flu, and a daily serving of Activia could regulate the digestive system.