Shook Partner Lindsey Heinz and Associate Elizabeth Fessler discuss the regulatory and legal implications of food advertising, especially through social media, in the podcast available below. What types of scientific substantiation do companies need to supply for labeling claims, particularly those related to health and safety? Do the U.S. Food and Drug Administration (FDA) and Federal Trade Commission (FTC) look to websites and social media when reviewing products for regulatory compliance? What should companies know about retweeting or sharing third-party endorsements? Listen to the podcast (6:53) and read the transcript, available below. LINDSEY HEINZ Have your cake and tweet it too—managing social media marketing campaigns related to food and beverage products can be a tricky legal line to tow. ELIZABETH FESSLER Social media continue to be a powerful marketing tool. And as access to technology expands, social media marketing campaigns are increasingly likely to play a significant role in marketing…
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The World Health Organization (WHO) has issued a report calling for "greater monitoring" of "unhealthy food products, especially those high in salt, sugar and fat." The report asserts that "exposure of children to the online marketing of unhealthy food products" remains "commonplace"—despite the organization's 2010 recommendations on limiting such exposure—and "urgently calls for developing and implementing a set of tools for monitoring the exposure of children to digital marketing." The establishment of a tool to monitor exposure could help "strengthen the case to national governments" for stronger measures limiting children's exposure to digital marketing of "unhealthy products," WHO states.
The U.K. Advertising Standards Authority (ASA) has declined to take action against Bacardi-Martini Ltd. following a complaint that its television ad “was irresponsible because it encouraged immoderate drinking by implying that drinking should take place before and throughout a night out.” In its determination, ASA found that “a sealed bottle of Bacardi rum was shown on several occasions but none of the characters in the ad were shown actually serving or drinking the rum” until the group of characters reaches a bar. “The implication was that the group would drink some of the alcohol during their night out, but we noted that none of the characters shown in the ad seemed to be dancing, moving, or otherwise interacting with each other in a way suggestive of intoxication or excessive alcohol consumption at any point, including in the final scenes,” ASA ruled. “For those reasons we concluded that the ad did…
The Council of Better Business Bureaus' Children's Food and Beverage Advertising Initiative (CFBAI) has announced an agreement among 18 companies to strengthen nutrition criteria for advertising to children under 12. Under the agreement, participating companies will not advertise food products to children unless the foods meet several updated standards, including reduced sodium levels. The standards will also limit "whole grain" labeling to those foods that "contribute a meaningful amount of whole grains" and limit nutrient-based qualifiers to "under-consumed" nutrients rather than "essential" nutrients. CFBAI also issued a white paper detailing the updated standards and the reasoning supporting each change. The implementation date is January 1, 2020, chosen to coincide with the U.S. Food and Drug Administration's updated food-labeling regulations.
The U.K. Advertising Standards Authority (ASA) has upheld the Obesity Health Alliance's complaints against advertisements for Kellogg Coco Pops Granola and a KFC milkshake. The organization asserted that both companies targeted ads for a product high in fat, salt or sugar (HFSS) to an audience under 16. The ad for Kellogg's Coco Pops Granola ran during a children's television show. Kellogg asserted that its granola is not an HFSS product, which ASA confirmed. "However, Coco Pops was a well-established brand, and Coco the Monkey, who was used to advertise all the products in the range, was also well-established as an equity brand character," ASA held. "We considered that many adults and children were likely to very strongly associate the Coco Pops brand and Coco the Monkey primarily with Coco Pops original cereal. At the time the ad was seen by the complainant Coco Pops original cereal was an HFSS product…
The National Advertising Division (NAD) has recommended that Perdue Farms Inc. modify or discontinue broadcast and YouTube advertisements for the company’s Harvestland Organic chicken, finding the ads could mislead consumers into believing all Perdue chicken is organically raised. NAD found that the company's “Free Range” and “All-Veggie Diet” ads featured “general brand references” to Perdue but only “momentary visual references to Harvestland Organic," potentially leading consumers to conflate the two. The ads, which asserted that Perdue's chickens are"happy," also “clearly stated the general claim, ‘Perdue, raising more organic chickens than anyone in America,’” NAD noted. The board further cited a consumer-perception survey submitted by Perdue, finding that “the survey showed that substantially more respondents took away a message about the Perdue brand, generally." "NAD recommended that the advertiser discontinue the broadcast and YouTube commercials or modify them – including the YouTube description copy – to make clear that the advertising pertains…
The U.K. Advertising Standards Authority (ASA) has upheld an advocacy group's challenge to the use of the term “natural” by Pret A Manger but rejected a challenge to the company’s advertising claim that its breads are fresh-baked at each location. Ads on Pret A Manger’s website and Facebook page claimed that the chain makes “handmade natural food,” “avoiding the obscure chemicals, additives and preservatives common to so much of the ‘prepared’ and ‘fast food’ on the market.” Pret A Manger argued that the ads did not imply that it uses only natural ingredients or that its food is additive- and preservative-free; rather, the terminology was used to express the company's mission, which is partly to “avoid (as opposed to entirely eliminate) ‘obscure’ (as opposed to all)” chemicals. ASA upheld the challenge, determining that consumers were likely to interpret the claims to mean that the chain’s food was “natural” and free from…
After advocacy groups asserted that DJ Khaled promotes alcohol brands to minors on social media, the music producer has reportedly reduced the number of his posts that mention alcohol. The complaint also alleged that Khaled failed to disclose his endorsement relationship with the brands, which include Diageo's Ciroc vodka and Sovereign Brands' Belaire sparkling wine. The contested posts include a Snapchat video of Khaled pouring alcohol into a bowl of cereal and an Instagram post featuring alcohol bottles displayed behind Khaled. Reportedly, many of Khaled’s followers are minors and he is the national spokesperson for educational nonprofit Get Schooled. Several news sources reported that Khaled's posts may violate federal law—including Federal Trade Commission rules governing branded content—and industry self-regulation standards, as the Distilled Spirits Council of the United States prohibits alcohol ads appearing on platforms in which at least 28 percent of the audience is under 21. Diageo, which reportedly ended Snapchat advertising…
A Massachusetts federal court has dismissed half of the claims in a lawsuit alleging Diageo-Guinness misrepresents where its Guinness Stout beer is brewed. O’Hara v. Diageo-Guinness USA Inc., No. 15-14139 (D. Mass., entered March 27, 2018). The plaintiff alleged that the “Frequently Asked Questions” page of Guinness’ website stated that “All Guinness sold in the UK, Ireland, and North America is brewed in Ireland at the historic St. James’s Gate Brewery in Dublin," while a disclosure on Guinness bottles sold in the United States indicate that the product is “Imported by DIAGEO – Guinness USA, Stamford, CT. Brewed and bottled by Guinness Brewing Company, New Brunswick, Canada. Product of Canada.” The court dismissed three of the six causes of action because the bottling and packaging labels were approved by the U.S. Alcohol and Tobacco Tax and Trade Bureau. A misrepresentation claim and two claims for violations of state consumer-protection laws will…
Rebbl Inc. faces a putative class action alleging its “super herb” beverages are falsely advertised and labeled because the claims made for their ingredients are “not supported by sound scientific evidence.” Richburg v. Rebbl Inc., No. 18-1674 (E.D.N.Y., filed March 16, 2018). The complaint alleges that beverages in Rebbl’s product line of “Elixirs” and “Proteins” contain several ingredients—turmeric, reishi, maca, matcha, ashwaganda, medium chain triglyceride oil and coconut milk—that the company falsely asserts can reduce stress and improve beauty, health or wellness. Claiming violations of New York’s General Business Law, breach of warranties, fraud and unjust enrichment, the plaintiff seeks class certification, injunctive relief, damages and attorney’s fees.
