Friday, December 03, 2010

ZI-SCAM?: Civil Settlement Reached Against Zicam’s Maker

CHICAGO - JUNE 17:  Boxes of Zicam cold remedy...Image by Getty Images via @daylifeLOS ANGELES – Matrixx Initiatives, the maker of Zicam allergy and cold medicines, has agreed  to settle a consumer protection lawsuit alleging that the company sold its products in misleading packaging.

The complaint was filed by the District Attorneys of five California counties – including Los Angeles County District Attorney Steve Cooley, and the District Attorneys of Sacramento, Fresno, Shasta and Riverside counties. The civil complaint was filed Nov. 30 in Sacramento Superior Court and signed by Sacramento Superior Court Judge Shelly Anne Chang on Thursday.

Deputy District Attorney Stuart C. Lytton of the Consumer Protection Division said the over-the-counter cold and flu retailer agreed to the settlement without admitting liability. Under the terms of the stipulated judgment, Zicam agreed to pay civil penalties and legal costs incurred by prosecutors and investigators in the amount of $428,800.

The complaint alleged that Zicam, located in Scottsdale, Ariz., violated state Business and Professions Code sections 12606(a), 12606(b) and 17500 by selling its products in packages containing extra space that mislead consumers as to the actual size of Zicam’s non-prescription and over-the-counter medications.
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