Tuesday, April 21, 2009
NATION
Kellogg, FTC reach deal over disputed ad claims
GRAND RAPIDS, Mich. — Kellogg Co. has agreed to settle federal charges that it falsely advertised the benefits for children of eating Frosted Mini-Wheats, the Federal Trade Commission announced Monday.
A proposed consent agreement would bar Kellogg from making misleading claims for its breakfast and snack foods and from misrepresenting studies, the FTC said. Kellogg’s national TV ads asserted that attentiveness improved nearly 20 percent in children who ate the cereal, compared with those who skipped breakfast, the FTC said. But the study the ads refer to found a benefit from eating Frosted Mini-Wheats in only half the children studied, and only 11 percent of the children’s attention improved 20 percent, according to the FTC.
Eaton posts quarterly loss, company’s first since 1991
CLEVELAND — Eaton Corp., a global company that depends on industrial vitality for sales of its diverse products, has posted its first quarterly loss since 1991, and its chief executive said Monday hard times are expected the rest of this year with more job cuts likely.
The Cleveland-based industrial parts and systems maker lost $50 million in the first quarter as sales skidded amid weak economic conditions worldwide, and it absorbed costs for thousands of job cuts.
Associated Press