
FTC Files for Injunction as IML Shuts Down
Agency worries MLM defendants are dissipating assets.
In September 2013, a federal judge approved a $4 million settlement of a class-action lawsuit filed against Kellogg Company for allegedly falsely marketing its Frosted Mini-Wheat cereals as “clinically shown to improve kids’ attentiveness by nearly…20%.” According to the settlement terms, class members, may get a $5 refund for each box of cereal (for a maximum of 9 boxes). The company also agreed to stop representing that the cereal will improve attentiveness. (Dennis et al. v. Kellogg Co., Case No. 09-cv-01786, S. D. CA.).
Agency worries MLM defendants are dissipating assets.
Patrick Coffee, The Wall Street Journal
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