Unethical business practices

In our business class we were asked to find an article that showed unethical business practices. The article that I chose to use for this is a article about Dannon yogurt.

“Dannon’s popular Activia brand yogurt lured consumers into paying more for its purported nutritional benefits — when it was actually pretty much the same as every other kind of yogurt.Falsely touting the “clinically” and “scientifically” proven nutritional benefits of the product, Dannon even got a famous spokesperson, Jamie Lee Curtis, for the supposed digestion-regulator. But after a while, some customers didn’t buy it.A class action settlement last year forced Dannon to pay up to $45 million in damages to the consumers that filed the lawsuit and others who said they’d been bamboozled. The company also had to limit its health claims on its products strictly to factual ones”.

Source: ABC News 

This article shows how easily we can be deceived about a product. This product just claimed to be healthy. There was never any proof that this yogurt was any different than the other yogurts that are on the market. We were lied to as a consumer. The Dannon yogurt company had to pay a heavy fine. Was the fine a real penalty? How much profit did this company make from telling us this lie? Where does the companies responsibly end and the consumers begin?

Reference

http://www.businessinsider.com/false-advertising-scandals-2011-9?p=1#ixzz2yR4HidFE

 

 

One Comment

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  1. Sam Lawrence says:

    This is quite a case of false advertising. As a personal fan of yogurt, I can see why it is hard for a company to improve the already significant health benefits found in even basic yogurt. Why would customers pay such a premium for this yogurt if the benefits were not proven? It amazes me that a company can lure consumers so easily.

    I am also intrigued by your point that Dannon may have still made a net gain from the sale of this yogurt despite the fine. What about all the lost sales they have to deal with now? Further, would they have profited from such advertising over the long-term even without the fine?

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