Airborne Settles FTC Charges for $30M Total Refunds

After agreeing to cough up $23 million to settle its class-action lawsuit in March this year—in the form of refunds and advertising the refund process—Airborne may now have to add about $6.5 million to that figure to settle FTC charges, bringing the total settlement to around $30 million. FTC added Victoria Knight-McDowell, the former schoolteacher who invented Airborne, and her husband Thomas John McDowell to the case charging Airborne did not have adequate evidence to support its advertising claims.

The agreement with FTC is still pending court approval, as is the earlier class–action settlement. One redress administrator will manage both pools of funds and consumers will receive a single refund check.

Consumers who purchased Airborne branded products between May 1, 2001 and Nov. 29, 2007 will have until Sept. 15 this year to file for a refund for up to six products. If Airborne fails to deliver the refunds as directed by the settlements, the full $30 million will be due to FTC, which would then administer the refunds.

More information on the refund process is available here.

Source: FTC Online. August 14, 2008