June 11th, 2012
Frosted Wheats Settlement Debated in the 9th
By MATT REYNOLDS
An attorney urged the 9th Circuit to reject a $10.6 million settlement for a class which claimed Kellogg falsely advertised its Frosted Mini-Wheats as improving kids’ memory and attentiveness.
Advertisements for Kellogg’s Frosted Mini-Wheats cited clinical studies that claimed the cereal improved cognitive function and memory in children by close to 20 percent. When the Federal Trade Commission found that these representations were false or misleading, a class of consumers filed suit.
Without admitting any wrongdoing, Kellogg reached a settlement with the class, and a San Diego federal judge approved that deal in April 2011.
The settlement included a fund of $2.75 million to refund claims, a $5.5 million charitable food donation, and an injunction that bars Kellogg from making similar advertising claims. Kellogg also agreed to pay attorneys’ fees and other costs.