Sample essay on ethics in marketing

Is it possible for Frosted Mini-wheats to improve kid’s attentiveness?

Kellogg’s answer was YAY!
Federal Trade Commission said NAY!
In their nationwide adverting campaign which ran through print, online and television media and their packaged products Kellogg’s claimed that having Frosted Mini-wheats in breakfast will clinically improve attentiveness of children by 20 percent. For this, they were sued backed on the basis of customer complaints and breaking Federal law.
Kellogg’s released a statement where they stated the questioned ad campaign was in circulation 4 years ago, since then the message has been adjusted in accordance with guidelines of Federal Trade Commission. Kellogg’s who are based out of Battle Creek in Michigan, also informed through this communication that they have “ long history of responsible advertising” (“ Business Insider”).

Settlement

Kellogg’s agreed to the lawsuit and paid $4 million in settlement of their claim in their marketing campaign. In addition to that, settlement will end up barring Kellogg’s in making claims which were comparable to Frosted Mini-wheats, unless claim made is true. All claims made about advantages to cognition (function, health or process) advertised in Frosted Mini-wheats or other snacks and foods must be true and substantial. Settlement will also limit Kellogg’s in misrepresentation of research, studies or any test pertaining to snacks or food products. Finally, settlement also contained provision for record keeping by allowing agency in monitoring compliance.
Settlement resulted in cash refund of upto 3 cereal boxes sold in the period when advertisement was in air, print or telecast. People will get $15 in settlement money based on $5 rate for 3 pieces of cereal boxes. Kellogg’s asked customers to visit www. cerealsettlement. com and submit claim for refund for purchases made between these dates 28th January 2009 to 1st October 2009.

Conclusion

Kellogg’s claimed that having Frosted Mini-wheats in breakfast will clinically improve attentiveness of children by 20 percent. For making this false statement they were sued and Kellogg’s had to settle this case with $4 million and refund of all cereal boxes sold during the ad was in circulation.

References

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. Huffington Post. Web. 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. Web. 2013
Kellogg’s Pays $4 Million Settlement After Claiming Frosted Mini Wheats Make You Smarter. http://www. businessinsider. com/kelloggs-4m-frosted-mini-wheats-settlement-2013-5? IR= T. Business Insider. Web. 2013