Advertising Law -- February 9, 2012

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In This Issue:

  • Nutella Settles False Ad Suit for $550,000 and Label Changes
  • FTC Settles More Acai Berry Suits
  • DAA Launches Behavioral Advertising Ad Campaign
  • Google Searches Out Controversy Over Changes to Privacy Policy
  • MMA Releases In-App Privacy Guidelines

Excerpt from Nutella Settles False Ad Suit for $550,000 and Label Changes

The maker of Nutella hazelnut spread has agreed to change its labeling and advertising and fund a $550,000 account to settle a class-action suit over the product’s marketing.

Last February the mother of a four-year-old child filed suit contending that Ferrero falsely advertised Nutella as healthy for children, even though the product contains significant amounts of saturated fat and processed sugar. She alleged that the use of images of whole wheat bread, juice, and fresh fruits combined with a statement that Nutella is “an example of a tasty yet balanced breakfast” was deceptive because the hazelnut spread is in fact “the next best thing to a candy bar.”

After more suits were filed and a federal court judge refused to dismiss the consolidated cases – ruling that the plaintiffs provided sufficient details about Ferrero’s advertising campaign and their reliance upon it – the parties reached a settlement. Ferrero agreed to establish a $550,000 interest-bearing fund to pay consumers restitution of $4 per jar purchased during the class period up to a maximum of $20 per customer.

Please see full issue below for more information.

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