Dannon sued over 'probiotic' yogurt claims

LOS ANGELES, Jan 23 (Reuters) - A proposed class action filed on Wednesday in California accuses Dannon Co Inc of mounting a massive false advertising campaign to convince consumers to pay more for yogurt containing "probiotic" bacteria because of the products' health benefits.

The lawsuit, filed in a Los Angeles federal court, said Dannon's own studies failed to support its advertised claims that its Activia, Activia Light and DanActive were "clinically" and "scientifically" "proven" to have health benefits that other yogurts did not.

It seeks reimbursement for all U.S. purchasers of Activia, Activia Light and DanActive, and demands Dannon engage in "a corrective advertising campaign."

A Dannon spokeswoman had no immediate comment on the lawsuit which was filed on behalf of a Patricia Wiener, who, according to the lawsuit, "suffered injury in fact and lost money as a result of the unfair competition described."

Dannon Co, a unit of France's Groupe Danone (DANO.PA), has relied on Activia and DanActive to help boost its U.S. yogurt business.

Activia, launched in the United States in 2006, and DanActive, launched in 2007, are expected to account for 40 percent or more of the company's U.S. yogurt business in 2008, Juan Carlos Dalto, Dannon chief executive, told Reuters in November.

Activia's packaging says it contains "bifidus regularis," which "helps naturally regulate your digestive system." Dannon has claimed that its dairy drink DanActive "has been clinically proven to help naturally strengthen the body's defenses when consumed daily," the lawsuit said.

Other companies have also promoted the benefits of foods with probiotics in order to tap into health and wellness trends that have attracted consumers.

The lawsuit claims Dannon has spent "far more than $100 million" to convey deceptive messages to U.S. consumers while charging 30 percent more that other yogurt products.

It also cited scientific reports showing, counter to Dannon's advertising, that there was no conclusive evidence that the bacteria prevented illness or was beneficial to healthy adults -- and that Dannon knew this.

The ads helped Dannon sell hundreds of millions of dollars of ordinary yogurt at inflated prices, said plaintiffs' attorney Timothy Blood of Coughlin Stoia Geller Rudman & Robbins. (Reporting by Gina Keating; Editing by Tim Dobbyn)