Four Loko Maker Settles AG Claims

According to New York Attorney General (AG) Eric Schneiderman, Phusion Projects, LLC, the company that makes Four Loko flavored malt beverages, has agreed to settle allegations by 20 attorneys general and the San Francisco city attorney that the company marketed and sold its products in violation of consumer protection and trade practice statutes. In re Investigation by Eric T. Schneiderman, N.Y. AG of Phusion Projects, LLC, No. AOD 14-075 (N.Y. AG, Bureau of Consumer Frauds & Protection, March 25, 2014).

Without admitting any liability, the company has agreed not to (i) promote the misuse of alcohol or mixing flavored malt beverages with caffeinated products; (ii) manufacture, market, sell, or distribute any caffeinated alcohol beverages; (iii) provide materials to wholesalers, distributors or retailers promoting mixing flavored malt beverages with caffeinated products; (iv) sell, distribute or promote alcohol beverages to underage persons or hire underage persons to promote these products; (v) use college-related logos to promote its products; or (vi) use Santa Claus in its promotional materials. The company also agreed to monitor social media and remove any postings depicting the consumption of caffeinated alcohol beverages or condoning the misuse of alcohol.

The company will pay $400,000 to cover attorney’s fees, costs and consumer education programs or for other purposes at the AG and city attorney’s discretion. See AG Eric Schneiderman Press Release, March 25, 2014.

Issue 518