Kellogg pays for iffy Mini-Wheats claims
The company was accused of falsely advertising its popular cereal's nutritional benefits to children.
Kellogg (K) will pay $4 million to settle a class-action lawsuit that accused the cereal giant of sugar-coating nutritional claims for its Frosted Mini-Wheats cereal.
The lawsuit claimed Kellogg falsely advertised that Frosted Mini-Wheats "improved kids' attentiveness, memory and other cognitive functions to a degree not supported by competent clinical evidence," according to the website created for administration of the settlement.
Consumers who bought Frosted Mini-Wheats in the U.S. between January 28, 2008 and October 1, 2009 can be reimbursed $5 per box of the cereal for up to three boxes. Any leftover settlement money will be donated to charity.
The company denies any wrongdoing, saying that the advertising campaign at the heart of the settlement ran four years ago, according to Food Business News.
Both sides originally agreed to a $10.6 million settlement -- with Kellogg setting up funds for class action members as well as donating $5.5 million worth of products to charity, paying for legal fees and refraining from certain ad claims for a three-year period.
But last year the federal Ninth Circuit Court of Appeals reversed that settlement, saying the charitable distribution element "neither identifies the ultimate recipients . . . nor sets forth any limiting restriction on those recipients."
A hearing on the current settlement is scheduled for September. If approved by the court and there are no appeals, cash payments would be distributed soon afterward.
“We tell consumers that they should deal with trusted national brands,” FTC Chairman Jon Leibowitz said in a 2009 statement regarding the Kellogg settlement. “So it’s especially important that America’s leading companies are more 'attentive' to the truthfulness of their ads and don’t exaggerate the results of tests or research.”
This is so stupid. As far as I can remember the commercial said that kids that had a good breakfast did better in school. People need to find something better to do with themselves.
The most important sentence in this article: "with Kellogg setting up funds for class action members as well as donating $5.5 million worth of products to charity, paying for legal fees and refraining from certain ad claims for a three-year period. " Legal fees, I bet the lawyers get more than 5 dollars a box with a maximum of 3 boxes. I wonder where class action lawsuits come from...probably not a wronged consumer wanting to get 15 dollars after a 4 year legal battle....
TASTE DAMN GOOD THOUGH.
$15 max payout, will be interesting to see how many saved receipts for 4 years. It would take a good sized warehouse to file all store receipts. If you buy a product and don't think it lives up to claims return it for a refund, end of story. But when there slimy lawers involved anything goes. More over is a consumers time so worthless that they would even take the time to try to collect. I wish the judge would toss the whole thing out and make the plaintiff's pay the legal fees of kelloggs.
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[BRIEFING.COM] The stock market finished an upbeat week on a mixed note. The S&P 500 added just over a point, holding its weekly gain at 1.0% while the Nasdaq lost 0.4%.
The major averages began the day on an upbeat note, but relinquished their opening gains during the first 90 minutes of action. The early sentiment was boosted by a better-than-expected nonfarm payrolls report for February (175K versus Briefing.com consensus 163K), but a closer look into the report suggested that ... More
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The solid report comes a month after the retailer closed all of its Canadian operations.
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