Krispies Creamed
The cereal false advertisers have struck again.
The Kellogg Company (NYSE symbol: K), the giant food and beverage company and world’s largest cereal producer was ordered by the Federal Trade Commission to stop making misleading advertisements on the health benefits of eating one of its cereals.
Kellogg's ads claim that Rice Krispies "now helps to support your child's immunity" with "25 percent Daily Value of Antioxidants and Nutrients - Vitamins A. B, C and E" and on the back of the Krispies' box is the statement, "Kellogg's Rice Krispies has been improved to include antioxidants and nutrients that your family needs to help them stay healthy."
The FTC order prohibits Kellogg from making claims about the healthiness of any food unless it has scientific evidence to prove it. Each violation of the order can result in a civil fine of $16,000 per advertisement or per consumer who sees an advertisement, which can add up to millions of dollars.
Last year Kellogg was issued an order by the FTC to stop claiming that Frosted Mini-Wheats cereal was clinically shown to "improve children's attentiveness by nearly 20 percent". During the same period the FTC also warned General Mills about misleading ads that claimed clinical studies showed that Cheerios can (NYSE symbol: GIS) "lower cholesterol by 4 percent in six weeks," ads which had been on TV for two years and which, the FDA said, made the cereal a drug under federal law.
There is a huge push on the part of Michelle Obama and the White House to reduce obesity in children and to improve the eating habits of Americans.
Everyone knows that eating foods high in vitamins and the right minerals is a healthy thing and that sugary and super fatty foods aren't good for you.
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