Brazilian Regulator Fines McDonald’s over Happy Meal® Promotion

The consumer regulatory agency of Sao Paulo, Brazil, has reportedly fined
McDonald’s US $1.6 million for allegedly marketing to children. Procon SP
has claimed that franchisee Arcos Dorados Holdings Inc. violated the state’s
consumer code by using children’s characters and toys to promote Happy
Meals®. “This is not an isolated case,” a Procon SP lawyer was quoting as
saying. “There’s no need to appeal as they do to children without the maturity
or the rationality to enter the market as consumers.”

In 2011, the Brazilian Consumer Defense Foundation fined the fast-food
corporation US$1.8 million after a nonprofit organization complained that
Happy Meal® incentives encouraged “unhealthy eating habits” among
children. A McDonald’s spokesperson has since told media sources that
the company plans to appeal the latest ruling. Additional details about the
Consumer Defense Foundation matter appear in Issue 420 of this Update. See
Law360 and Reuters, April 23, 2013.