FTC Alters Four Loko Flavored Malt Beverage Labeling Requirements

Evidently in response to public comments, the Federal Trade Commission
(FTC) has modified its agreement with Phusion Projects, LLC to require
an alcohol facts panel on certain-sized cans of its Four Loko fruit-flavored
malt beverage. In re Phusion Projects, LLC, No. C-4382 (FTC, order entered
February 6, 2013). The agreement resolves charges that the company and
its principals falsely claimed that a 23.5-ounce can contained “the alcohol
equivalent of one or two regular 12-ounce beers, and that a consumer could
drink one entire can safely on a single occasion.” To the contrary, according to
FTC’s administrative complaint, the products contain the alcohol equivalent of
four to five 12-ounce cans of beer.

Without admitting liability, the company has agreed to label any container
of Four Loko or other flavored malt beverage with more than two servings of
alcohol with an alcohol facts panel. The panel will set forth the “the container
size, percentage alcohol by volume, number of servings in the container,
and serving size in fluid ounces.” U.S. dietary guidelines deem 0.6 ounces of
pure alcohol to constitute a single serving. The agreement also requires that
any container with more than 2.5 servings of alcohol be made resealable by
August 6, 2013. The company will not be permitted to “depict any covered
product containing 1.2 or more fluid ounces of ethanol being consumed
directly from the container.” See FTC News Release, February 12, 2013.