Haagen-Dazs Company

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IN THE MA ITR OF HAAGEN-DAZS COMPANY, INC.

CONSENT ORDSR, ETe., IN REGARD TO ALLEGED VIOLA non OF SECS. 5 AND 12 OF THE FEDERAL TRADE COMMISSION ACT Docket C-3582. Complaint, June 1995--Decision, June, 1995 This consent order prohibits, among other things, a New Jersey-based ice cream and frozen yogurt corporation from misrepresenting the existence or amount of fat, saturated fat, cholesterol, or calorie content of any of its frozen food products in the future, and requires the respondent to meet the Food and Drug Administration qualifying amount for any nutrient-content claim. Appearances For the Commission: Anne V. Maher and Michelle K. Rusk. For the respondent: Basil Culyba and Kirsten Wolfe, Howrey & Simon Washington, D.

COMPLAINT The Federal Trade Commission, having reason to believe that Haagen-Dazs Company, Inc. , a corporation ("Haagen-Dazs " or respondent ), 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. Respondent Haagen-Dazs is a New Jersey corporation, with its principal office or place of business Glenpointe Centre East, Teaneck, NI.

PAR. 2. Respondent has manufactured, advertised, labeled offered for sale, sold and distributed Haagen- Dazs Frozen Yogurt, a "food" within the meaning of Sections 12 and 15 of the Federal Trade Commission Act.

PAR. 3. The acts and practices of respondent alleged in this " iscomplaint have been in or affecting commerce, as "commerce defined in Section 4 of the Federal Trade Commission Act. HAAGEN-DAZS COMPANY, INe. 763 762 Complaint PAR. 4. Respondent has disseminated or has caused to be disseminated advertisements for Haagen-Dazs Frozen Yogurt including but not necessarily limited to the attached Exhibits 1- These advertisements contain the following statements and depictions:

A. (In a 70-point type headline:) WHY IS HAAGEN-DAZSff FROZEN YOGURT BETTER THAN YOUR FIRST TRUE LOVE? (Depiction of "Honeymooners HAAGEN-DAZS IS STILL 98% FAT FREE (In IS-point text below the headline:) Imagine pineapple sorbet tantaizingly wrapped around a coconut frozen yogurt bar. And now imagine that this bar has 100 calories. Or imagine a pint of vanilla frozen yogurt swirled with heavenly raspberr sorbet. And that these and all the rest of our irresistible frozen yogurt and sorbet combinations are 98% fat free. But they re still totally Haagen-Dazs. What could be better? (Depiction of frozen yogurt caron container and box of frozen yogurt bars) (In 8-point type at the bottom right side of the page:) . frozen yogurt and sorbet combinations (Exhibit I) B. (In a 70- point type headline:) WHY IS HAAGEN-DAZS FROZEN YOGURT BETTER THAN YOUR FIRST TRUE LOVE? Dcpiction of "Honeymooners HAAGEN-DAZS IS STILL 98% FATFREE* (In 20-point text below the headline:) Try new Raspberr RendezvousTM and Orange TangoTM Frozen Yogurt. Both are 98% fat free and still totally Haagen-Dazs. (Depiction of frozen yogurt carton container) (In 8-point type at the bottom right side of the page:J *frozen yogurt and sorbet combinations (Exhibit 2) e. (In a I IO- point type headline:) NOW DISAPPEARING AT A STORE NEAR YOU.

(Depiction of frozen yogurt bar) (In IS-point text below the headline:) Take a good look. This is what a Haagen-Dazs Frozen Yogurt bar looks like. We thought we d point that out, just in case you have some trouble finding them in your store. Because it seems that people are demanding them faster Complaint 119 F. than we can supply them. Not that we re really surprised. After all, we re the ones who made them so irresistible in the first place -- with flavors like Raspberr & Vanilla, Peach, Strawberr Daiquiri and Pifia Colada. And each with just 1 gram of fat and 100 calories. So now that you know what they look like -- go ahead and tr one. And you ll find out for yourself just how quickly they can disappear.

(Exhibit 3) PAR. 5. Through the use of the statements and depictions contained in the advertisements referred to in paragraph four including but not necessarily limited to the advertisements attached as Exhibits 1 and 2, respondent has represented, directly or by implication, that Haagen-Dazs Frozen Yogurt is 98 percent fat free. PAR. 6. In truth and in fact, in most cases Haagen-Dazs Frozen Yogurt is not 98 percent fat free. Seven of the nine Haagen-Dazs Frozen Yogurt flavors sold in cartons and three of the eight Haagen- Dazs Frozen Yogurt Bar flavors contained more than two percent fat content at the time of dissemination of the advertisements referred to in paragraph four. Therefore, the representation set forth in paragraph five was, and is, false and misleading. PAR. 7. Through the use of the statements and depictions contained in the advertisements referred to in paragraph four including but not necessarily limited to the advertisements attached as Exhibits 1 and 2, respondent has represented, directly or by implication, that Haagen-Dazs Frozen Yogurt is low fat. PAR. 8. In truth and in fact, in most cases Haagen-Dazs Frozen Yogurt is not low fat. Three of the nine Haagen- Dazs Frozen Yogurt flavors sold in cartons and three of the eight Haagen-Dazs Frozen Yogurt Bar flavors contained from eight to twelve grams of fat per serving at the time of dissemination of the advertisements referred to in paragraph four. In addition, four of the nine Haagen-Dazs Frozen Yogurt flavors sold in carons contained from four to six grams of fat per serving. Therefore, the representation set forth in paragraph seven was, and is, false and misleading.

PAR. 9. Through the use of the statements and depictions contained in the advertisements referred to in paragraph four, including but not necessarily limited to the advertisement attached as Exhibit 3, respondent has represented, directly or by implication, that Haagen-Dazs Frozen Yogurt Bars contain one gram of fat per servmg.

HAAGEN-DAZS COMPANY, INC. 765 762 Complain! PAR. 10. In truth and in fact, in many cases Haagen-Dazs Frozen Yogurt Bars contain more than one gram of fat per serving. Three of the eight Haagen-Dazs Frozen Yogurt Bar flavors contained from eleven to twelve grams offat per serving at the time of dissemination of the advertisements referred to in paragraph four. Therefore, the representation set forth in paragraph nine was, and is, false and misleading.

PAR. 11. Through the use of the statements and depictions contained in the advertisements referred to in paragraph four including but not necessarily limited to the advertisement attached as Exhibit 3 , respondent has represents directly or by implication, that Haagen-Dazs Frozen Yogurt Bars are low fat. PAR. 12. In truth and in fact, in many cases Haagen-Dazs Frozen Yogurt Bars are not low fat. Three of the eight Haagen-Dazs Frozen Yogurt Bar flavors contained from eleven to twelve grams of fat per serving at the time of dissemination of the advertisements referred to in paragraph four. Therefore, the representation set forth in paragraph eleven was, and is, false and misleading. PAR. 13. Through the use of the statements and depictions contained in the advertisements referred to in paragraph four including but not necessarily limited to the advertisement attached as Exhibit 3, respondent has represented, directly or by implication, that Haagen-Dazs Frozen Yogurt Bars contain 100 calories per serving. PAR. 14. In truth and in fact, in many cases Haagen-Dazs Frozen Yogurt Bars contain more than 100 calories per serving. Thee of the eight Haagen-Dazs Frozen Yogurt Bar flavors contained from 210 to 230 calories per serving at the time of dissemination of the advertisements referred to in paragraph four. Therefore, the representation set forth in paragraph thirteen was, and is, false and misleading.

PAR. 15.The acts and practices of the respondent as alleged in this complaint constitute unfair or deceptive acts or practices and the making of false advertisements in or affecting commerce in violation of Sections 5(a) and 12 of the Federal Trade Commission Act. Chairman Pitofsky not participating.

,... . . . ! . .! Complaint 119F. EXHIBIT I HAGE-DAD IS 99% FAT FREE Imagine pineapple sorbet tantalizingly wrapped around a coconut frozen yogurt bar. And now Imagine that this bar has 100 calories. Or imagine a pint of vanilla frozen yogurt swirled with heavenly raspberry sorbet. .And that these and all the rest of our irresistible i !, ,\5"frozen yogurt and sorbet combinations are 98%fat free. But they re still totally Haagen.Dazs. What could be better? III! HAGEH'DAI. rn BETR TH AtIHG; lrzenJ'un!l!.lCOnati ! :..,,_. ::,,.:::,. :::,, : ... HAAGEN-DAZS COMPANY, INe. 767 762 Complaint EXHIBIT 2 LldUD.L.V t.

IS HAGE-DAZ" WH YOGRT FR BE 1H YOUR TRE RR HAGE-DAZ IS 98% FAT Try new Raspberry j:OUPONEXPIRESI211193.J Rendezvous' and Orange SAVE $1.00 Tango' Frozen Yogurt. Both )i!1' eN AN fLYO are 98% fat free and still HACiN-DAII" F1DZEN YOGURT ANT Cri1(f,f, totally Haagen-Dazs. 18023 '''' '1iJ (;"""Iu ,Rt' . HAGEN'DAD. 11' IIII 1"1 : Qili: IT' S BETR TH ANING. 5"" "'" vca" ,,"C 5Q""e' corr, a"Q"S 7,IIII,III,'; 7 C B 1 J C ""'"',"" ",," ,." """"""0 "",." J", '" C, . .....

Complaint 119 F.T.c. EXHIB IT 3 NOW DIAPEARING AT A STORE NEA you.

EXHJ.SIT(reduced-size3 from 15" x25"

original) ;J: ' HAAGEN-DAZS COMPANY, INe. 769 762 Decision and Order DECISION AND ORDER The Federal Trade Commission having initiated an investigation of certain acts and practices of the respondent named in the caption hereof, and the respondent having been furnished thereafter with a copy of a draft complaint which the Bureau of Consumer Protection proposed to present to the Commission for its consideration and which, if issued by the Commission, would charge respondent with violations of the Federal Trade Commission Act; and The respondent and counsel for the Commssion having thereafter executed an agreement containing a consent order, an admission by respondent of all the jurisdictional facts set forth in the aforesaid draft of 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 Commission having thereafter considered the matter and having detennined that it had reason to believe that the respondent has violated the said Act, and that complaint should issue stating its charges in that respect, and having thereupon accepted the executed consent agreement and placed such agreement on the public record for a period of sixty (60) days, and having duly considered the comment fied thereafter by interested persons pursuant to Section 34 of its Rules, now in further confonnty with the procedure prescribed in Section 2.34 of its Rules, the Commssion hereby issues its complaint, makes the following jurisdictional findings and enters the following order:

1. Respondent Haagen-Dazs Company, Inc. is a corporation organized, existing and doing business under and by virtue of the laws of the State of New Jersey with its principal office and place of business located at Glenpointe Centre East, Teaneck, NJ. 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 119F.TC. ORDER It is ordered That respondent Haagen-Dazs Company, Inc. , a corporation, its successors and assigns, and its offcers, agents representatives and employees, directly or through any corporation subsidiary, division or other device, in connection with the manufacturing, labeling, advertising, promotion, offering for sale sale, or distribution of any frozen food product in or affecting commerce, as "commerce" is defined in the Federal Trade Commission Act, do forthwith cease and desist from misrepresenting, in any manner, directly or by implication, through numerical or descriptive terms or any other means, the existence or amount of fat saturated fat, cholesterol or calories in any such product. If any representation covered by this Par either directly or by implication conveys any nutrient content claim defined (for purposes of labeling) by any regulation promulgated by the Food and Drug Administration compliance with this Par shall be governed by the qualifying amount for such defined claim as set forth in that regulation. II.

Nothing in this order shall prohibit respondent from making any representation that is specifically penntted in labeling for any frozen food product by regulations promulgated by the Food and Drug Administration pursuant to the Nutrition Labeling and Education Act of 1990.

It is further ordered That for three (3) years after the last date of dissemination of any representation covered by this order respondent, or its successors and assigns, shall maintain and upon request make available to the Federal Trade Commission for inspection and copying copies of:

1. All materials that were relied upon in disseminating such representation; and HAAGEN-DAZS COMPANY, INC. 771 762 Decision and Order 2. Al1 tests, reports, studies, surveys, demonstrations, or other evidence in its possession or control that contradict, qualify, or call into question such representation, including complaints from consumers.

It is further ordered That respondent shall notify the Commssion at least thirty (30) days prior to any proposed change in the respondent such as dissolution, assignment or sale resulting in the emergence of a successor corporation, the creation or dissolution of subsidiaries, or any other change in the respondent which may affect .compliance obligations arising out of this order. It is further ordered That respondent shall, within thirty (30) days after service of this order, distribute a copy of, this order to each of its operating divisions and to each of its officers, agents representatives, or employees engaged in the preparation or placement of advertisements or other materials covered by this order. VI.

It is further ordered, That respondent shall, within sixty (60) days after service of this order, and at such other times as the Commission may require, file with the Commission a report, in writing, setting forth in detail the manner and fonn in which it has complied with this order.

Chairman Pitofsky not participating.

Complaint 119F.