Discuss why the claims made in the advertising could be considered misleading?
Claims of the advertising of Kellogg’s Frosted Mini-wheats which claimed that it clinically displayed improvement in attentiveness of kids by nearly 20 percent was false and violated federal law. It made false claims of improving cognitive health improvements based on Studies and Tests. Kellogg’s also made claim in different television advertisement that Frosted Mini-wheats taken in breakfast will improve your child’s attentiveness nearly 20% more than children who took no breakfast.
Discuss why the claims made in the advertising could be considered truthful?
The claim which was made in the Kellogg’s advertising was so daft that anyone who claims that they were misled was unreasonable. Anyone who purchased Frosted Mini-wheats bought them as they thought it makes the children smarter. This is just a compensation paid by Kellogg’s to insult the intelligence of customers.
Identify three possible stakeholders who were affected by the advertising and the subsequent charges by the FTC and lawsuit?
First party to be affected by this lawsuit is Kellogg’s. They were sued for class action in 2009 which mirrored Deceptive marketing claim of FTC. Federal court resolved this dispute and approved $4 million settlement. Kellogg’s denied misconduct and agreed settlement of another $2.75 million refunds to consumers.
Customers are the second party affected by this lawsuit. They claimed Kellogg’s used deceptive marketing through their false advertisements of Frosted Mini-wheats. Customers got settlement of cash refunds of maximum 3 boxes bought in the period when the advertisement was on air. The refunds will be done for boxes bought between period of 28th January 2009 and 1st October 2009. Customers will be receiving $5 box as reimbursement with $15 maximum refund.
Federal Trade Commission (FTC) found out that referred research discovered “only about half the children who ate Frosted Mini-Wheats for breakfast showed any improvement in attentiveness, and only about one in nine improved by 20 percent or more”( Shapley), and children only did better than those children who took no breakfast.
Discuss how the settlements of the charges and/or lawsuit affect at least one of the stakeholders?
Customers claimed Kellogg’s used deceptive marketing through their false advertisements of Frosted Mini-wheats. Customers got settlement of cash refunds of maximum 3 boxes bought in the period when the advertisement was on air. The refunds will be done for boxes bought between period of 28th January 2009 and 1st October 2009. Customers will be receiving $5 box as reimbursement with $15 maximum refund.
Conclusion
Claims of the advertising of Kellogg’s Frosted Mini-wheats which claimed that it clinically displayed improvement in attentiveness of kids by nearly 20 percent was false and violated federal law. The claim which was made in the Kellogg’s advertising was so daft that anyone who claims that they were misled was unreasonable. The three parties which were affected by this lawsuit were the customers who purchased the product, the company (kellogg’s) who produced and sold the product and Federal Trade Commission who took Kellogg’s to court on the basis of False advertising. Customers will be receiving $5 box as reimbursement with $15 maximum refund.
Works Cited
Shapely, D. Frosted Mini-Wheats Improve Kids' Attention Spans?! Well, No. http://www.thedailygreen.com/environmental-news/latest/frosted-mini-wheats-ads-47042202. theDailyGreen.com. 22 April 2009. Web. 14 Nov. 2013
Kellogg To Pay $4 Million Over Frosted Mini-Wheats Ad That Claimed Cereal Improved Kids' Attentiveness. http://www.huffingtonpost.com/2013/05/28/kellogg-frosted-mini-wheats-ad_n_3346530.html. 28 May 2013. Huffington Post. . Web. 14 Nov.2013
Kellogg fined $4M for false Mini Wheats advertising. http://www.cbc.ca/news/business/kellogg-fined-4m-for-false-mini-wheats-advertising-1.1388018. Cbc.ca. 28 May 2013 . Web. 14 Nov.2013
