Campbell Soup Company

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IN THE MATTER OF CAMPBELL SOUP COMPANY CONSENT ORDER, ETC., INREGARD TO ALLEGED VIOLATION OF SECS. 5 AND 12 OF THE FEDERAL TRADE COMMISSION ACT Docket 9223. Complaint, January 25, 1989--Decision, August 18, 1992 This consent order requires, among other things, a New Jersey-based company to disclose in future advertisements that directly or by implication mention heart disease -- in connection with soups containing significant amounts of sodium -both the sodium content of a serving of such soup and the recommended maximum daily limit on sodium intake. Respondent also is prohibited from representing a connection between any soup and a reduction in the risk of heart disease, unless such representations are substantiated by competent and reliable scientific or medical evidence.

Appearances For the Commission: Lee Peeler and Nancy S. Warden. For the respondent: S. William Livingston, Sandra L. Spear and Eugene I. Lambert, Covington & Burling, Washington, D.C. COMPLAINT Pursuant to the provisions of the Federal Trade Commission Act, as amended, and by virtue of the authority vested in it by said Act the Federal Trade Commission, having reason to believe that Campbell Soup Company, a corporation, ("Campbell" or respond-4 1 11 1 5 0 664 2336 1333 47 -1 5 1 11 1 5 1 664 2336 94 42 93.762444 ent) has violated the provisions of the Federal Trade Commission Act, and it appearing to the Commission that a proceeding by it in respect thereof would be in the public interest, alleges: PARAGRAPH 1. Campbell is a New Jersey corporation, with its offices and principal place of business located at Campbell Place, Camden, New Jersey.

CAMPBELL SOUP COMPANY 789 788 Complaint PAR. 2. Campbell produces, advertises, offers for sale, sells, and distributes canned soup products, which are foods as the term food is defined in Section 15 (b) of the Federal Trade Commission Act. PAR. 3. Advertisements for Campbell's canned soup products have been disseminated by various means in or affecting commerce, including magazines distributed across state lines for the purpose of inducing the purchase of Campbell's soups by members of the public. PAR. 4. The acts and practices alleged in this complaint constitute the maintenance of a substantial course of trade in or affecting commerce, as commerce is defined in the Federal Trade Commission Act.

PAR. 5. In the course and conduct of its business, and for the purpose of promoting the sale and distribution of its soups, respondent, as part of its Soups 1 3 4 3 7 1157 1372 30 35 97.006447 is5 1 3 4 3 8 1201 1372 106 35 96.522247 Goods 1 3 4 3 9 1320 1371 115 36 92.258232 Food advertising campaign, has disseminated, or caused the dissemination of, in a variety of national magazines an advertisement entitled What's5 1 3 4 5 7 1616 1492 34 28 96.954681 at5 1 3 4 5 8 1664 1485 59 34 96.981461 thes 1 3 4 5 9 1738 1485 139 34 96.585007 bottom4 1 3 4 6 0 541 1542 1334 51 -1 5 1 3 4 6 1 541 1549 43 35 96.698349 of5 1 3 4 6 2 604 1560 20 24 96.929207 a5 1 3 4 6 3 646 1548 97 36 96.073402 bowl5 1 3 4 6 4 767 1548 42 36 96.603958 of5 1 3 4 6 5 828 1547 217 46 93.306229 Campbell's5 1 3 4 6 6 1069 1545 143 48 74.122849 soup?, a copy of which is attached as Exhibit A.

PAR. 6. The advertisement described in paragraph five above contains the following statements, with emphasis in the original: Did you know that most of Campbell's Soups are low in fat and cholesterol? For example, a serving of regular Chicken Noodle, or new Special Request with one-third less salt, is low in fat and has just 15 milligrams of cholesterol. And that's especially good to know, because research tells us that a diet low in fat and cholesterol may help reduce the risk of some forms of heart disease. PAR. 7. In the advertisement described in paragraph five above, respondent has represented, and now represents, either directly or by implication, that:

a. Most of Campbell's soups are low in fat and cholesterol and, as part of a diet low in fat and cholesterol, may help reduce the risk of some forms of heart disease.

b. Campbell's Chicken Noodle is low in fat and has just 15 milligrams of cholesterol and, as part of a diet low in fat and cholesterol, may help reduce the risk of some forms of heart disease. Complaint 115 F.T.C.

PAR. 8. In the advertisement described in paragraph five above respondent has failed to disclose that Campbell's soups are high in sodium and that diets high in sodium may increase the risk of heart disease. In light of the representations made these facts would be material to consumers in deciding to purchase Campbell's soups and the failure to disclose these facts is deceptive. PAR. 9. In the advertisement described in paragraph five above, respondent has represented, and now represents, either directly or by implication, that most of its soups make a positive contribution to a diet that reduces the risk of heart disease. PAR. 10. In the advertisement described in paragraph five above respondent represented and now represents that it possessed and relied on a reasonable basis for the representation set forth in paragraph nine at the time such representation was made. PAR. 11. In truth and in fact, respondent did not possess and rely upon a reasonable basis for the representation set forth in paragraph nine at the time such representation was made. Therefore, the representation set forth in paragraph ten was and is false, misleading, or deceptive.

PAR. 12. Respondent's dissemination of the false and misleading representations as alleged in this complaint constitutes unfair or deceptive acts or practices in or affecting commerce in violation of Sections 5 (a) and 12 of the Federal Trade Commission Act. Commissioner Machol not participating.

q93 Complaint LIS F.T.c.

There’s alot that's good for you at the bottom of a bowl of Campbell's Soup. And since eanng “ght is just as important as exercise when tt comes to looking and feeling better, why not sor up a bow! today? :

When most people think of Ser, they automati- --~ ' Ly chink of bran cereal But you can also'cmnr ~~” . . Because some Campbell’s Soups area. - = —— debcious source-of fiber. In fact, & serving of one of our Bean or Pea S Shas as much Sber as a ° .

They're low in fat, too. Which isgood news, since the National ancer Institute that a diet :

igh m and low in fat a - ‘bele-rectuce the risk of some SIOUES i cance: —— wwhamng Bee see - reining ol EOW CHOLESTERO Dig you know that most of Campbell’s Soups . ie low in fat and cholesterol? For example, a... serving of regular C hicken Noodle, or new -Special Request. with one-third gee ee less Saf, is Jow in fat and has just if vl ~":'_15 milligrams of cholesterol And amp: ~~ Yiat'S especially good to know, fi aaimEE : because research tells us that a f —--diet low in fat and cholesterol Chicken ’ may help reduce the nsk of some Noodle forms of heart disease. . SOUP = q eo .

When you prepare a canof Campbell's Tomato, Cream of Mushroom or-Cream of Celery Soup with a full can ‘of milk. you have- = :

\ more-than just a delicious cream BF Pm soup. You have a delicous source LJ of calcium. In fact, one serving Iw] Drovides vou with 10% of your daily_requirement. And that's ;

good for yeur body, Because cah- Tomato Team heips keep your bones and ~ SOUP= rm. teeth strong. ———— ‘ATTHE BOTTOM OFITALL - —-—-- SOUP IS GOOD FOOD.

CAMPBELL SOUP COMPANY 793 788 Decision and Order DECISION AND ORDER The Commission having heretofore issued its complaint charging the respondent named in the caption hereof with violation of Sections 5 and 12 of the Federal Trade Commission Act, as amended, and the respondent having been served with a copy of that complaint, together with a notice of contemplated relief; and The respondent, its attorney, and counsel for the Commission having thereafter executed an agreement containing a consent order, an admission by the respondent of all the jurisdictional facts set forth in the complaint, a statement that the signing of said agreement is for settlement purposes only and does not constitute an admission by respondent that the law has been violated as alleged in such complaint, and waivers and other provisions as required by the Commission's Rules; and The Secretary of the Commission having thereafter withdrawn this matter from adjudication in accordance with Section 3.25(c) of its Rules; and The Commission having considered the matter and having thereupon accepted the executed consent agreement and placed such agreement on the public record for a period of sixty (60) days, now in further conformity with the procedure prescribed in Section 3.25(f) of its Rules, the Commission hereby makes the following jurisdictional findings and enters the following order: 1. Respondent Campbell Soup Company is a corporation organized, existing and doing business under and by virtue of the laws of the State of New Jersey, with its office and principal place of business located at Campbell Place, in the City of Camden, State of New Jersey.

2. The Federal Trade Commission has jurisdiction of the subject matter of this proceeding and of the respondent, and the proceeding is in the public interest.

Decision and Order 115 F.T.C.

ORDER DEFINITIONS For purposes of Part I, the term sodium5 1 5 1 1 9 1529 856 197 35 96.800522 disclosures 1 5 1 1 10 1739 854 162 37 94.667938 amount shall mean:

1. 500 milligrams of sodium per eight ounce serving prior to the effective date of final regulations of the Food and Drug Administration implementing Section 403(r)(1) of the Federal Food, Drug, and Cosmetic Act, as amended by the Nutrition Labeling and Education Act of 1990; or 2. The disqualifying nutrient level of sodium per serving size or per 100 grams upon the effective date of final regulations of the Food and Drug Administration implementing Section 403(r)(1) of the Federal Food Drug and Cosmetic Act, as amended by the Nutrition Labeling and Education Act of 1990.

For purposes of Part I, the term recommended5 1 7 1 1 9 1702 1672 192 33 96.342651 maximum5 1 7 1 1 10 1910 1669 99 44 96.866623 daily4 1 7 1 2 0 675 1732 696 48 -1 5 1 7 1 2 1 675 1737 89 35 96.082817 limits 1 7 1 2 2 777 1735 45 45 96.082817 of5 1 7 1 2 3 828 1734 142 36 95.923203 sodium5 1 7 1 2 4 985 1733 136 36 90.443115 intake shall mean:

i. The daily reference value or other daily intake limit established in an effective final regulation of the Food and Drug Administration, or ii. In the absence of such a regulation, the daily intake limit of sodium advised by any one of the following three organizations: the National Academy of Sciences; the Surgeon General of the Public Health Service; and the American Heart Association. I.

It is ordered, That Campbell Soup Company, a corporation, ("Campbell" or respondent”)5 1 10 1 2 4 1270 2486 43 34 96.648407 its5 1 10 1 2 5 1329 2494 202 26 94.534836 successors5 1 10 1 2 6 1546 2484 67 34 96.495499 ands 1 10 1 2 7 1627 2482 150 45 96.495499 assigns,5 1 10 1 2 8 1792 2482 43 34 96.711746 its5 1 10 1 2 9 1851 2481 158 40 96.442238 officers,4 1 10 1 3 0 678 2539 1333 56 -1 5 1 10 1 3 1 678 2554 134 41 96.653358 agents,5 1 10 1 3 2 843 2545 295 48 96.206566 representatives5 1 10 1 3 3 1168 2545 69 35 96.348122 ands 1 10 1 3 4 1265 2544 219 46 96.348122 employees,5 1 10 1 3 5 1515 2542 148 45 96.335014 directly5 1 10 1 3 6 1693 2551 39 25 96.829567 or5 1 10 1 3 7 1760 2539 153 46 96.921432 through5 1 10 1 3 8 1942 2550 69 34 96.992462 any4 1 10 1 4 0 678 2597 1334 56 -1 5 1 10 1 4 1 678 2613 181 40 97.002426 corporate5 1 10 1 4 2 872 2617 39 24 96.663734 or5 1 10 1 4 3 923 2605 99 35 96.957932 others 1 10 1 4 4 1033 2603 135 41 96.926308 device,5 1 10 1 4 5 1181 2602 36 36 96.926308 in5 1 10 1 4 6 1230 2601 210 36 96.666977 connections 1 10 1 4 7 1453 2600 83 35 96.968117 with5 1 10 1 4 8 1549 2600 58 35 96.700005 thes 1 10 1 4 9 1620 2598 223 46 96.740196 advertising,5 1 10 1 4 10 1858 2597 154 45 96.974747 offering4 1 10 1 5 0 678 2656 1334 50 -1 5 1 10 1 5 1 678 2666 56 36 96.971527 for5 1 10 1 5 2 749 2665 85 41 96.955269 sale,5 1 10 1 5 3 852 2665 73 35 96.856789 sales 1 10 1 5 4 940 2675 40 24 96.451912 or5 1 10 1 5 5 994 2662 226 36 96.541527 distributions 1 10 1 5 6 1234 2661 43 35 96.780151 of5 1 10 1 5 7 1288 2671 68 35 96.814301 any5 1 10 1 5 8 1372 2671 90 34 96.948738 soups 1 10 1 5 9 1477 2659 72 36 97.009903 that5 1 10 1 5 10 1564 2658 160 36 96.913742 contains5 1 10 1 5 11 1741 2668 100 24 96.834900 more5 1 10 1 5 12 1855 2656 83 36 97.006546 than5 1 10 1 5 13 1954 2656 58 35 96.486115 thea 1 10 1 6 0 679 2715 1333 45 -1 5 1 10 1 6 1 679 2724 144 36 96.596115 sodium5 1 10 1 6 2 848 2722 198 36 96.304924 disclosures 1 10 1 6 3 1072 2726 156 34 95.963181 amount,5 1 10 1 6 4 1255 2730 37 25 96.658913 as5 1 10 1 6 5 1318 2718 146 36 96.804451 defined5 1 10 1 6 6 1489 2718 126 40 95.932945 above,5 1 10 1 6 7 1642 2716 36 35 95.932945 in5 1 10 1 6 8 1705 2715 241 36 18.285332 commerce" as defined in the Federal Trade Commission Act, do forthwith cease and CAMPBELL SOUP COMPANY 795 788 Decision and Order desist in any advertisement that directly or by implication mentions heart disease in connection with the soup from failing to notify consumers of:

A. The sodium content of a serving of such soup in terms of the number of milligrams; and B. The recommended maximum daily limit of sodium intake in terms of number of milligrams and the recommending organization. For purposes of this Part, the statements required by subparagraphs A and B must appear in close proximity. In the event that the Food and Drug Administration does not have a final effective regulation as described in subparagraph (i) above and none of the three named organizations named in subparagraph (ii) above advises that daily sodium intake be limited to a specific maximum amount, subparagraph B of this Part shall not apply. Provided, however, that this Part shall not be deemed to apply to any representation approved for labeling (a) by applicable final regulations of the Food and Drug Administration implementing Section 403(r)(1) of the Federal Food, Drug, and Cosmetic Act, as amended by the Nutrition Labeling and Education Act of 1990, or (b) by the United States Department of Agriculture pursuant to, if applicable, Section 7 of the Federal Meat Inspection Act, as amended, or Section 8 of the Poultry Products Inspection Act, as amended.

Il.

It is further ordered, That respondent in connection with the advertising, offering for sale, sale, or distribution of any soup in or affecting commerce, as the term commerce is defined in the Federal Trade Commission Act, do forthwith cease and desist from representing directly or by implication that there is a connection between soup or its composition and a reduction in the risk of heart disease, unless at the time of the dissemination of any such representation, respondent produces and relies upon a reasonable basis for the connection represented, consisting of competent and reliable scientific or medical evidence. Provided, however, that any such representation approved for labeling of any such soup (a) by Decision and Order 115 F.T.C.

applicable final regulations of the Food and Drug Administration implementing Section 403(r)(1) of the Federal Food, Drug, and Cosmetic Act, as amended by the Nutrition Labeling and Education Act of 1990, or (b) by the United States Department of Agriculture pursuant to, if applicable, Section 7 of the Federal Meat Inspection Act, as amended, or Section 8 of the Poultry Products Inspection Act, as amended, will be deemed to have a reasonable basis as required by this Part.

III.

It is further ordered, That respondent shall distribute a copy of this order to each of its operating divisions and officers, agents, representatives, or employees engaged in the preparation and placement of advertisements or other such sale materials for any soup product.

IV.

It is further ordered, That respondent shall notify the Commission at least thirty (30) days prior to the effective date of any proposed change in the corporation which may affect compliance obligations arising out of this order, such as its dissolution, assignment, or sale, resulting in the emergence of a successor corporation, or the creation or dissolution of subsidiaries engaged in the advertising, offering for sale, sale or distribution of any soup product. V.

It is further ordered, That respondent, within sixty (60) days after this order becomes final, shall file with the Commission a report in writing, setting forth in detail the manner and form in which it has complied with the order.

CAMPBELL SOUP COMPANY 797 788 Separate Statement SEPARATE STATEMENT OF COMMISSIONER MARY L. AZCUENAGA I have voted to accept the settlement with the Campbell Soup Company and to issue the final consent order as modified from the version proposed for public comment. Although I would have preferred that the order, which applies to the advertising and marketing of soup, apply to a broader range of products, I accept the limitation to soup in the interest of settling the case. The proposed order may not apply expressly to Campbell food products other than soup, but it puts Campbell on notice that the Commission might consider claims similar to those challenged in this case deceptive for other food products as well. In other respects, the order has been improved to help cure the deception alleged in the Commission's complaint without unnecessarily restricting the communication of truthful information.

Although we do not have conclusive evidence on the question, the comments we received on the order as originally proposed lend weight to the view that when the order triggers a disclosure requirement regarding sodium content in soup, simply disclosing the number of milligrams of sodium the soup contains might not provide enough information for consumers to put the claim in context from a dietary standpoint. We have now added a requirement that when the sodium content disclosure is triggered by the order, Campbell must also disclose the recommended maximum daily sodium intake. This requirement is appropriate because it will provide consumers with the information necessary to decide if the sodium content of the soup is consistent with their dietary goals, yet it is not unnecessarily pejorative and should not discourage truthful and useful fat and cholesterol claims. I also support the other changes in the order because they have been made to promote consistency with the Nutrition Labeling and Education Act as currently read by the Food and Drug Administration.

Complaint 115 F.T.C.