Miscommunication

Go back in business history and find a monumental business miscommunication.

Airborne

Expectation: To sell a “miracle cold buster”

Deviation: “They made the claim, Airborne products are clinically proven to treat colds.”

Result: The loss of $23.3 million to settle a class action lawsuit over false advertisement and the removal of the word cold on all packaging.

Actually happened:

“An effervescent dietary supplement that was created by a school teacher” was marketed to be the cure for the common cold through commercials, the Oprah show, famous people and placement on drugstore shelves. It was touted as a product a teacher created because she worked with germy children. They took in $100 million in sales of Airborne in 2006 alone.

Airborne’s claims were strategically mis-communicated to the public as clinically proven to treat colds, but they had no data to prove it.

The FTC ruled there is no competent and reliable scientific evidence to support the claims made by the defendants that Airborne tablets can prevent or reduce the risk of colds, sickness, or infection; protect against or help fight germs; reduce the severity or duration of a cold; and protect against colds, sickness, or infection in crowded places such as airplanes, offices, or schools.

Airborne Health Inc. settled to pay 30 million dollars in settlement funds.