FTC is Fired Up; Tells The Ol' 'Blackout in a Can' to Be Honest

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By: Dwayne W. Waite Jr.

The FTC is trying its hardest not to be outdone by the ASA, its British counterpart. First, it went after Reebok, telling it to stop advertising its EasyTone line as having better results than normal sneakers (ads that Reebok pulled in 2010). FTC, constantly standing guard for the people, right? Of course.

With that huge notch on its belt, the FTC decided to continue its recent crusade against the wicked and deceivers in advertising. It's next evil is none other than Four Loko and its maker, Phusion Projects. Four Loko, as many of you may know, is the alcohol and caffeine-infused party in a can (or "blackout in a can" for those who can't handle their alcohol) that has gained national attention due to a few college co-eds who grossly underestimated its punch (or flavor...yuck!). The FTC is not forcing Four Loko off the shelves, but it is demanding that Phusion Projects be honest about the alcohol content. The FTC alleges that the drinkmaker says that 23.5 ounces of Four Loko contains as much alcohol as two 12-ounce beers. "Foul!" says the FTC; the regulatory organization says that the content of the beverage contains as much as 4.5 12-ounce beers. Although the Four Loko squad believes they did no wrong in deceiving the consumer, LA Times reports that the new labels will reflect FTC's sentiment.

The sentiment here is the same sentiment as the LA Times writer who covered the story. It seems that the FTC was just getting picky with the wording on the can, because if anyone knows about Four Loko, it is not deceiving. The people who buy Four Loko seem to understand not only that they know what they are getting into, and fully accept that buying the drink may be the last thing they remember doing that night.

FTC, you just went after Reebok, and then you feel like pushing around Four Loko? You take down a giant just to pick on a little guy — shame on you, FTC. No one likes a bully.

The situation brings me to this point: if the consumer wasn't deceived by the labeling of Four Loko, is there any harm done? This blogger has been to a couple of parties where Four Loko was present, and everyone knew what they were getting into. Four Loko doesn't advocate drinking it like a regular beer, though the people who get it don't drink beer "regularly" anyway.

Truth and transparency in advertising is important. It is one of the main ways people get their information about products and services; we know that. And sometimes calling in the suits at the FTC is needed when the industry needs to get rid of some bad apples. But the sense that this was a case for Captain Obvious can't be shaken off. If the FTC really wants to go after people, what about the other soft drinks? How could any cola drink be called "diet"? Is that not a misleading statement?

The FTC wasn't going after anything worthwhile, it just felt like proving a point. Point proved, FTC, and that's the last time you get invited to a college homecoming party.

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About the Author

Dwayne W. Waite Jr. is partner and principal at JDW: The Charlotte Agency, a marketing and advertising shop in Charlotte, NC. He enjoys consumer behavior, economics, and football.

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