FRANKFORT, KY (WAVE) – A settlement wasreached involving the makers of a caffeinated alcoholic malt beverage and Kentucky'sattorney general.
On Tuesday Kentucky Attorney General Jack Conway, alongwith 19 other attorney generals and SanFrancisco's city attorney, resolved the settlement with Phusion Projects, LLCand its officers regarding allegations the company violated consumer protection and trade practice statutes by marketing analcoholic drink called Four Loko to minors in addition to promoting dangerousand excessive consumption of the beverage, promoting the misuse of alcohol andfailing to disclose to consumers the effects of drinking alcoholic beveragescombined with caffeine.
Under thesettlement Phusion agreed to stop manufacturing caffeinated alcoholic beveragesand change how it markets and promotes its non-caffeinated flavored maltbeverages.
Phusion also agreed not to promote bingedrinking, drinking while driving, consuming an alcoholic beverage by means of arapid ingestion technique or device, or underage drinking, not hire actors ormodels under the age of 25, or who appear under age 21, and to stay away fromusing university logos.
In a pressrelease sent on Tuesday Conway was quoted as saying, "This settlement will keepthe caffeinated version of the malt beverage off of store shelves, and it willensure that consumers, especially minors, are no longer prey to the misleadingand deceptive marketing techniques that Phusion has used to sell its products."
The state ofKentucky will receive $14, 047.62 as a result of the settlement.
Tuesday, April 20 2010 11:21 PM EDT2010-04-21 03:21:00 GMT
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