
FTC Files for Injunction as IML Shuts Down
Agency worries MLM defendants are dissipating assets.
In July 2014, a federal judge approved a settlement to a class-action lawsuit against Quaker Oats Co. The complaint, which was originally filed in 2010, alleged that Quaker Oats misleadingly labeled products –including Quaker Instant Oatmeal, Quaker Chewy Granola Bars, and Quaker Oatmeal to Go Bars – as “Wholesome” and “Heart Healthy” when, in reality, they contain partially hydrogenated vegetable oil (PHO) which have dangerous levels of artificial trans fat and artificial trans fat causes heart disease, cancer, and diabetes. According to the settlement terms, Quaker Oats has agreed to remove PHOs from its Oatmeal to Go and Instant Quaker Oatmeal products by December 31, 2015, and may not re-introduce PHO’s into those products for a period of at least 10 years. In addition, Quaker Oats agreed not to introduce PHOs into products – such as Quaker Chewy Bars and Instant Quaker Oatmeal – that do not contain PHOs for a period of 10 years. Quaker Oats also agreed to stop making claims that products contain a “dietarily insignificant amount of trans fat” on any products that contain 0.2 grams or more of artificial trans fat per serving. (In Re Quaker Oats Labeling Litigation, Case No. 10-cv-00502, N.D. CA.).
For more information about other trans fat-related class action lawsuits and TINA.org’s coverage of the issue, click here.
Agency worries MLM defendants are dissipating assets.
Patrick Coffee, The Wall Street Journal
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