UPDATE 1-Matrixx says FTC investigating Zicam ads
Tue Apr 4, 2006 9:37 AM ET
NEW YORK, April 4 (Reuters) - Matrixx Initiatives Inc. (MTXX.O: Quote, Profile, Research) on Tuesday said the U.S. Federal Trade Commission was probing the company's advertising for a variety of products, including some of its Zicam cold remedies.
The company, in a filing with securities regulators, said the purpose of the probe was to find whether it engaged in any unfair or deceptive acts or practices.
On March 21, FTC investigators in Cleveland asked Matrixx to provide information to the agency by April 27, the company said.
"The company is fully cooperating with the FTC and believes that its advertisements and promotional activities are accurate and comply with applicable laws and regulations in all material respects," Matrixx said.
Phoenix-based Matrixx also said the Council of Better Business Bureaus recently said that scientific evidence substantiated Matrixx's advertising claims that using Zicam nasal gel and swabs resulted in a less severe cold.
Zicam cold medicine, introduced in 1999, is the company's flagship product.
Matrixx said its net income declined to $3.1 million in 2005, from $5.0 million in 2004, because of an $8.5 million charge to settle lawsuits with consumers who alleged that the medicine caused them to lose their senses of smell and taste. |
