18 false advertising scandals that cost some brands millions by Julien Rath on Feb 27, 2017, 12:22 PM Advertisement
 In advertising, there's a big difference between pushing the truth and making false claims. Many companies have been caught out for peddling mediocre products, using wild claims like "scientifically proven" with "guaranteed results." For companies that cross the line, it can cost millions and lead to a damaged reputation. We found 18 examples of false advertising scandals that have rocked big brands — some are still ongoing and not all companies have had to pay up, but each dealt with a fair amount of negative publicity. Will Heilpern, Karlee Weinmann, and Kim Bhasin contributed to an earlier version of this report. SEE ALSO: 19 failed soda brands you'll never taste again Uber misled drivers about how much they could make.  Uber was forced to pay $20 million to settle claims brought to the FTC alleging the ride hailing service had inflated the hourly earnings for drivers in its online advertisements. The FTC started investigating Uber in 2015 and finished its investigation at the beginning of 2017. In a statement Uber said: "We’ve made many improvements to the driver experience over the last year and will continue to focus on ensuring that Uber is the best option for anyone looking to earn money on their own schedule."
Activia yogurt said it had "special bacterial ingredients."  Ads for Dannon's popular Activia brand yogurt landed the company with a class action settlement of $45 million in 2010, according to ABC News. The yogurts were marketed as being "clinically" and "scientifically" proven to boost your immune system and able to help to regulate digestion. The Activia ad campaign, fronted by actress Jamie Lee Curtis, claimed that the yogurt had special bacterial ingredients. As a result, the yogurt was sold at 30% higher prices than other similar products. However, the Cleveland judge overseeing the case said that these claims were unproven. The lawsuit against Dannon began in 2008, when consumer Trish Wiener lodged a complaint. On top of the fine of $45 million, Dannon was ordered to remove "clinically" and "scientifically proven" from its labels, according to ABC. Phrases similar to "clinical studies show" were deemed permissible. Dannon denied any wrongdoing and claimed it settled the lawsuit to "avoid the cost and distraction of litigation."
DraftKings and FanDuel exaggerated novice users' chances of winning.  The two biggest fantasy sports companies were ordered to pay $6 million each in 2016 to settle multiple false advertising lawsuits, Fortune reported. At the heart of the complaints was that both companies misrepresented the chances casual and novice players had of winning cash prizes and the chance to earn positive returns on their entry fees. It resulted out of an investigation that showed professional and high-volume players used automated computer scripts and sophisticated statistical game theory to achieve huge payoffs. According to a statement from the New York AttorneyGeneral the "settlement agreements impose the highest New York penalty awards for deceptive advertising in recent memory." According to Bloomberg, the merger discussions between both companies is progressing.
See the rest of the story at Business Insider
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