State reaches settlements in lead paint, cold remedy cases

CARSON CITY -- The Nevada attorney general's office has reached agreements with toy manufacturer Mattel and dietary supplement producer Airborne Health Inc. that obligate them to end certain practices and pay the state more than $600,000 combined.

Money from the settlements will go into the state's general fund.

The agreement announced Tuesday with Mattel and its Fisher-Price subsidiary ends a 16-month investigation that resulted in their voluntary recall of 2 million toys last year. The toys were made in China, and their surfaces contained excessive amount of lead paint.

The toy companies will pay $12 million to the attorney general offices in 38 states. Nevada will receive $210,595.

Surfaces of toys were painted with lead paint more than 10 times the national safety standard. Barbie dolls and Polly Pocket toys were among the items recalled.

"It is particularly egregious when products for children are manufactured in such a way to endanger their health and well-being," Nevada Attorney General Catherine Cortez Masto said.

The state will get $460,000 from Airborne Health Inc., manufacturer of Airborne Effervescent remedies.

Under the settlement, $7 million will be paid to attorney general offices in 32 states to settle allegations that Airborne made false claims that its products were clinically proven to treat colds and stop sore throats.

Airborne is the top-selling product in the cold and cough sections of major stores.

Under the settlement, Airborne will not make any claims about the health benefits of its products unless it can substantiate claims with scientific tests.

The company is prohibited from saying "take at the first sign of a cold symptom" or claiming the products can diagnose, prevent, treat or cure colds, coughs, the flu, allergies or upper respiratory infections.

Airborne was developed by Carmel, Calif., schoolteacher Victoria Knight-McDowell. The product is sold as a dietary supplement, not as a health product, and does not receive testing by the federal Food and Drug Administration.

"Companies must learn that they cannot make unsubstantiated claims about their products through advertising and any other means in Nevada," Masto said.