Four Loko and Class Action Settlements

Four Loko

To appease parental concerns about popular drink Four Loko, the Federal Trade Commission launched a campaign against Four Loko for its advertising.

Policy Analyst Michelle Minton comments.

“Regardless of the merits of the FTC’s claims, this October the FTC announced that they had reached a settlement agreement with Phusion Projects whereby the company would add resealable tops to their cans and add another warning label that states the alcohol content of one can is actually equivalent to 4.5 ”regular” beers. Still it’s not enough for parents and lawmakers hell-bent on beating this company (and any other beverage producer who dares to make their product look fun) out of existence. Despite the fact that Phusion Projects has agreed to once again modify their product to satisfy the squealing would-be-nanny’s to us all, a few people are speaking out against the agreement, claiming it should go further.”

Class Action Lawsuits

The courts are enacting safe guards against the misuse of class action settlements.

Senior Counsel Hans Bader comments.

“As I noted in 2007, ‘In California state court, leftover money from a consumer class action settlement is commonly given not to consumer groups, but to groups that have nothing to do with consumers, like the left-wing La Raza Legal Center; the politically correct Employment Law Center of the San Francisco Legal Aid Society (which seeks to curb employers’ First Amendment rights); the ever-litigious Lawyers’ Committee; and groups that specialize in advocating affirmative action, broader definitions of ‘hate crimes’ (at the expense of civil liberties), or expanded access to welfare programs for illegal aliens. This ripoff of consumers is magnified as a result of practices like fluid recovery.’”