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Walgreens Settles Suit Over Cold Medication

“Airborne” imitator didn't live up to hype

By Jon Hood
ConsumerAffairs.com

August 4, 2009

The lawsuit alleged that Walgreens made false and misleading statements about its product, cleverly named Wal-Born (at one time spelled Wal-Borne). Specifically, Walgreens claimed that Wal-Born could treat or prevent the common cold, a claim strongly disputed by the plaintiffs.

The claims in the suit were strikingly similar to those in a suit that name-brand Airbone settled last year. In March 2008, Airborne agreed to pay $23.3 million to settle a suit alleging that the manufacturer wrongly claimed the medicine would prevent colds. In August, Airborne paid over $6 million to the Federal Trade Commission (FTC) to settle allegations that the company did not provide sufficient evidence to support its claims about the drug's effectiveness.

Lydia Parnes, Director of the FTC's Bureau of Consumer Protection, said at the time that Airborne would not “reduce the severity or duration of colds, or provide any tangible benefit for people who are exposed to germs in crowded places.”

Airborne and its generic counterparts have long had their critics. At the time of the Airborne settlement, David Schardt, of the Center for Science in the Public Interest, called the drug “basically an overpriced, run-of-the-mill vitamin pill that's been cleverly, but deceptively, marketed.”

Although prevalent in some of the nation's largest retailers, including Rite-Aid and Wal-Mart, Airborne has not been tested by the Food and Drug Administration. That's because of a loophole in the law that allows dietary supplements -- but not “drugs” -- to be manufactured without government testing before entering the market.

Manufacturers of dietary supplements still must have evidence to support any claims made on the product's packaging, however. And as it turns out, the only study that actually suggested that Airborne was effective just happened to be commissioned by Knight-McDowell labs -- the same company that manufactures Airborne.

Walgreens, the nation's largest drugstore chain, denies any wrongdoing in the settlement. Anyone who purchased Wal-Born between May 24, 2001 and March 31, 2009 is eligible to take part in the settlement, which offers a choice between up to three refunds of $4.99 each, or a free flu shot, purportedly valued at $25.

The class does not include purchasers of Wal-Born hand sanitizer. Consumers need not present a receipt or proof of purchase to be eligible to submit a claim. Consumers who believe they may be eligible should visit www.walbornRefund.com.

Judging from its website, Walgreens has decided that selling Wal-Born isn't worth the headache after all. The page labeled “Wal-Born: Effervescent Health Fomula” now reads simply, “Product is no longer active.”

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