According to the FTC, the company falsely claimed that a 23.5oz can of Four Loko contains the alcohol equivalent of one or two regular 12oz beers, and that a consumer could drink one entire can safely on a single occasion.
Under the modified final Order, Phusion Projects is required to seek approval from the US Department of Treasury’s Alcohol and Tobacco Tax and Trade Bureau (TTB) to put an Alcohol Facts panel on containers of Four Loko or any other flavoured malt beverage containing more than two servings of alcohol, as defined by the US Dietary Guidelines.
This Alcohol Facts disclosure is truthful and non-misleading, and together with the other relief provided in the order, corrects the deception alleged in the complaint, the FTC said.
The order also requires that all of Phusion’s flavoured malt beverages containing more than two and a half servings of alcohol be made resealable within six months.
The original proposed order against Phusion Projects and principals Jaisen Freeman, Christopher Hunter, and Jeffrey Wright was accepted for public comment on 3 October, 2011. The FTC received more than 250 public comments about that proposal.
The final order requires that all of Phusion’s flavoured malt beverages containing more than two servings of alcohol include disclosures, whereas the proposed order required disclosures on products with more than two and a half servings.
Source: FTC
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