The FTC announced last week that it has reached a settlement with chicken purveyor KFC over its advertising. The Kentucky Fried Chicken franchisor became the subject of an FTC investigation after it aired commercials last fall suggesting that its chicken was a component of a healthy eating plan and that it was compatible with low-carb diets. While the FTC did not endorse any specific diet, it recognized that both the Atkins and South Beach diets restricted dieters' consumption of breaded foods. KFC pulled the campaign shortly after it was launched. See blog entries dated 10/29/03 and 11/20/03. The FTC charged KFC with making false claims in its advertising. In the settlement, the parties agree that KFC will not (i) compare the health benefits of its food to a Burger King Whopper, (ii) state that its products are compatible with low-carb eating plans, or (iii) make any representations about its chicken, unless the statements are true and are supported by evidence. A copy of the settlement is available here.
Posted by franchiselawblog at June 7, 2004 02:53 PM