Company Officer May Not Make Unsubstantiated Health Claims About Dry Milk Product, Under FTC Consent Agreement
FTC News Release
April 23, 1986
Roy Brog, formerly chairman of the board of Meadow Fresh Farms Inc., a nationwide company that marketed a dry milk substitute, has agreed to have scientific evidence for any future health or nutritional claims he makes about the product, under a consent agreement with the Federal Trade Commission. The consent settles a 1985 FTC complaint that charged Brog with violating the law by not having substantiation for certain claims he made about the company's Meadow Fresh White.
The company sold the powdered, dairy-based milk substitute through a distributor network. The FTC charged in September 1985 that both Roy Brog and Larry Brog, formerly the company's chief executive officer, lacked a scientific basis for certain claims about Meadow Fresh. The FTC accepted a consent order that settled the charges against Larry Brog in December 1985.
According to the FTC, the Brogs did not have substantiation for their claims that Meadow Fresh had a shelf life of up to 10 years and that it would reduce the incidence of cardiovascular disease because it contained less xanthine oxidase, a milk enzyme, than whole milk. The consent agreement the Commission is announcing today requires Roy Brog not to make unsubstantiated claims about Meadow Fresh's shelf life or its ability to reduce cardiovascular disease. The consent also prohibits him from making any claims about health or nutritional benefits for Meadow Fresh or other food products unless he has reliable and competent scientific evidence substantiating his claims.
In addition, the consent prohibits Brog from excluding any distributors in computing "average" distributor earnings, unless he explains the exclusion. The FTC had charged the Brogs made false claims about the average earnings of distributors, substantially overstating the income distributors could reasonably expect to earn, by including in the statistics only those who had actually earned income.
In April 1985 a district court placed Meadow Fresh Farms into involuntary bankruptcy. Meadow Fresh and the Brogs are all based in Salt Lake City.
Commissioners Terry Calvani, Patricia P. Bailey and Mary L. Azcuenaga voted to accept the consent agreement; Chairman Daniel Oliver and Commissioner Andrew J. Strenio Jr. did not participate.
A consent agreement is for settlement purposes only and does not constitute admission of a law violation. When the Commission issues a consent order on a final basis, it carries the force of law with respect to future actions. Each violation of such an order may result in a civil penalty of up to $10,000.
- FTC File No. 832-3042. FTC Docket No. 9197.
Related News Release
This page was posted on August 27, 2006.