The Rudd Center for Food Policy and Obesity has published Sugary Drink FACTS 2014, a report funded by the Robert Wood Johnson Foundation that targets trends in beverage advertising to children. Claiming that companies spent $866 million on advertising for sugar sweetened beverages (SSBs) in 2013, the report argues that even though youth-oriented TV programs and websites showed fewer SSB ads in 2013 than in 2010, the advertising available “is still overwhelmingly for unhealthy drinks.” The authors point out that as SSB advertising on children’s websites declined by 72 percent, “the popularity of energy drinks and regular soda brands on social media increased exponentially from 2011 to 2014.” According to the report, energy drink and regular soda brands now represent 84 percent of the 300 million Facebook likes for the brands included in the analysis, 89 percent of 11 million Twitter followers, and 95 percent of 1.8 billion YouTube views. In…
Tag Archives advertising
Under a settlement agreement approved by a New Jersey federal court, Dakota Growers Pasta Co. will pay $7.9 million to resolve claims that it deceptively markets, advertises and sells Dreamfields Pasta as having a low glycemic index and only five grams of digestible carbohydrates per serving, making it a “healthy alternative to traditional pasta.” Mirakay v. Dakota Growers Pasta Co., Inc., No. 13-4429 (D.N.J., order entered October 20, 2014). The agreement stipulates that for one year, Dakota will remove from its packaging (i) the claims of a low glycemic index and low carbohydrates and (ii) the claim that the product can reduce spikes in blood glucose levels. Dakota will also pay $2.9 million in attorney’s fees and $5 million into a settlement fund for distribution to class members, who will receive $1.99 for every box of pasta ordered online without limit as well as for each box purchased in a store,…
The Belarussian Chamber of Representatives has reportedly approved draft legislation that would stop the practice of advertising products and events other than alcohol beverages with names and logos that are confusingly similar to alcohol brands. Some bottled waters, for example, are apparently promoted with names, fonts and images that are associated with vodka brands with just a slight change in the nam —a practice referred to as “umbrella” advertising. Existing advertising law would be tightened to help reduce the use of alcohol, combat alcoholism and reduce tobacco consumption—the latter by applying the same standards to ad campaigns bearing a resemblance to tobacco product brands. The bill will become law unless rejected by the National Assembly’s Council of the Republic or the president. See Minskby.com, October 23, 2014. Issue 542
Global Product Liability Partners Gregory Fowler and Marc Shelley have co-authored an article titled “Food and beverage labelling and advertising in the United States: Regulatory and litigation landmines,” appearing in the September 2014 issue of the International Bar Association’s Product Law and Advertising Newsletter. The article considers the public and private challenges facing U.S. food and beverage companies that promote their products as beneficial to health, “natural” or “all natural,” or include in their products genetically modified ingredients, high-fructose corn syrup or “evaporated cane juice.” The authors address trends in consumer-fraud lawsuits and settlements, competitor litigation and suits brought by morality and decency watchdogs. The article concludes by recommending the inclusion of a legal team in marketing strategies to enhance the likelihood that companies will successfully navigate these risks while distinguishing themselves in the marketplace. Issue 542
A New Jersey federal court has refused to dismiss a lawsuit alleging that Gerber falsely advertises some of its products as providing immune system boosts and as being nearly equal to breast milk. In re Gerber Probiotics Sales Practices Litig., No. 12-835 (D.N.J., order entered October 6, 2014). The plaintiffs alleged that Gerber misleadingly advertised three products—Good Start Protect Infant Formula, Good Start 2 Protect Formula for 9 through 24 months and DHA & Probiotic Cereal—as boosting immunity with an “Immuniprotect” formula that includes trademarked Bifidus BL probiotic bacteria. Gerber challenged the plaintiffs’ fourth amended complaint for lack of standing, arguing that the complaint did not allege that a named plaintiff purchased the infant formula product, but the court found that the basis for the claims was the same in that Gerber advertised each product as “scientifically advanced” and superior through the inclusion of Bifidus BL. The court agreed with Gerber’s…
The Third Circuit Court of Appeals has found that a lower court did not abuse its discretion in approving a $3 million settlement offer in a nationwide class action alleging that Ferrero USA falsely advertised Nutella hazelnut spread as nutritious for children. In re Nutella Mktg. & Sales Practices Litig., No. 12-3456 (3rd Cir., order entered September 29, 2014). Several class members had objected to the size of the attorney’s fees award and the deduction of the award from the settlement fund. More details about the settlement appear in Issue 444 and Issue 530 of this Update. Issue 539
The U.K. Advertising Standards Authority (ASA) has upheld two complaints against a website advertising Brewmeister Ltd.’s “Snake Venom” beer as “THE WORLD’S STRONGEST BEER.” In response to the first complaint, which disputed the beer’s stated alcohol by volume (ABV),the agency questioned whether the independent analysis that determined Snake Venom’s ABV differed from the process used for standard beer. Noting that the beer’s fermented alcohol content was concentrated via freeze distillation and possibly augmented with ethyl alcohol, ASA found the advertisement misleading because “consumers would interpret the claim ‘Snake venom 67.5%’ to mean the product had an alcohol volume of 67.5%, as per the standard ABV measure, without having been through any other additional processes to standard beer.” ASA also upheld its own complaint challenging “whether the ad implied the drink may be preferred because of its alcohol or intoxicating effect, and whether the factual information about the strength of the…
The National Advertising Division (NAD) has referred Talking Rain Beverage Co. to the Federal Trade Commission (FTC) after the company failed to comply with a previous NAD determination finding that certain aspects of its advertising could be misleading. After a July 2014 NAD investigation, Talking Rain’s advertising for Sparkling ICE—which it presents as “the adventurous side of water,” “the vibrant side of water” and “the bold side of water”—was found to be misleading if the product was not shown because consumers may believe that the product is water without additional flavoring. NAD found that Talking Rain’s claim “Naturally flavored sparkling mountain spring water” was not misleading when displayed with the product, which is brightly colored and bears a list of ingredients indicating the inclusion of flavoring agents. In July, Talking Rain said it disagreed with the conclusion but would take NAD’s recommendation into consideration, but following several months of inaction…
The U.K. Advertising Standards Authority (ASA) has upheld complaints against a TV commercial claiming that Kellogg’s “Special K Multi Grain Porridge” contained “30% less fat than other porridges.” According to ASA, which received complaints from PepsiCo Inc. and 14 other competitors, Kellogg Marketing and Sales Co. (UK) Ltd. argued that the advertisement’s reduced-fat comparative claim complied with the Annex to EC Regulation 1924/2006 on Nutrition and Health Claims Made on Food. To this end, Kellogg provided ASA and Clearcast with the data and methods used to conduct product comparisons under this regulation. The company reportedly explained that all varieties of Special K porridges contained 5.5 percent fat or less, whereas the top 75 percent of porridge products on the market contained an average fat content of 7.84 percent. “Kellogg also pointed out than none of the products included in the comparison had a fat content of 5.5% or less,” noted…
A group of U.S. senators and a group of U.S. representatives, all Democrats, each sent an identical letter to Federal Trade Commission (FTC) Chair Edith Ramirez calling for a report on 2014 food and beverage marketing expenditures aimed at children. They found it “unacceptable” that FTC “is not actively working on projects focused on food marketing to children,” pointing out that data gathered during 2014 and compiled into a report could serve as a five-year follow-up to a similar 2012 report on 2009 data. “A follow up report would help policy makers, public health practitioners, industry representatives, and the public understand how food marketing directed at children and adolescents has changed over the last five years and provide a critical opportunity to evaluate the continued role of such marketing in regards to the health of our nation’s children.” The senators who signed the letter were Sens. Tom Harkin (D-Iowa), Richard Durbin…
