FTC

News

Netflix Cancels $1 Million Contest

Netflix just announced that they're cancelling their second $1 million prize amid privacy concerns.

Netflix just announced that they're cancelling their second $1 million prize amid privacy concerns. The contest was a successor to the company's first algorithm-improvement competition, which lasted three years. The current contest came under fire when a lawsuit claimed the first competition violated privacy laws. A woman sued Netflix in December for invasion of privacy, saying they disclosed personal information that wasn't anonymous enough.

The contest challenged competitors to develop a more efficient movie-recommendation algorithm for users, and gave them access to 100 million movie information and ratings from 480,000 subscribers, assigning each a unique ID. The contest lasted three years, and the $1 million prize eventually went to a team lead by AT&T researchers.

Netflix settled the lawsuit out of court and says it's reached an agreement with the FTC. It then decided not to pursue the second competition, which would have involved an improved ratings system. Apparently, movie rental histories are protected records in the US, something Facebook Beacon learned the hard way when it shared users' Blockbuster Video rental histories.

Source: Flickr User Mr.Thomas

Health

FDA: Packaged Foods' Health Claims Make Them Drugs

Could the breakfast staple, Cheerios, be classified as a drug?

Could the breakfast staple, Cheerios, be classified as a drug? That's what the Food and Drug Administration is claiming, based on the product's labeling that it's "clinically proven to help lower cholesterol." On May 5, the FDA sent a warning letter to General Mills, the maker of Cheerios, charging that the cereal's cholesterol-lowering health claims violate federal law. It stated:

Based on claims made on your product's label, we have determined that your Cheerios Toasted Whole Grain Oat Cereal is promoted for conditions that cause it to be a drug because the product is intended for use in the prevention, mitigation, and treatment of disease.

According to The Wall Street Journal, if General Mills wishes to keep the statements on the Cheerios box as is, the company has to file a new-drug application for the cereal. In a statement issued this morning, General Mills expressed that it will "look forward to discussing this with the FDA and to reaching a resolution."

While I agree that the FDA should be closely involved with health claims in consumer products, I can't help but wonder whether this is taking resources away from a larger problem in the FDA's hands: improving food safety in our country. Should packaged foods be able to make health claims, or does that render them drugs?

Source

FTC

Warning Signs in Diet Advertisements

We've all seen the ads on TV and in magazines that promise rapid weight loss and immediate results, but most of these claims are false.

We've all seen the ads on TV and in magazines that promise rapid weight loss and immediate results, but most of these claims are false. It's definitely hard to decipher the good from the bad but here are a few trigger statements that should raise a warning flag for the product you're about to spend money on:

  • "Lose weight without diet or exercise!"
    Achieving a healthy weight takes work. Take a pass on any product that promises miraculous results without the effort. Buy one and the only thing you’ll lose is money.
  • “Lose weight no matter how much you eat of your favorite foods!”
    Beware of any product that claims that you can eat all you want of high-calorie foods and still lose weight. Losing weight requires sensible food choices. Filling up on healthy vegetables and fruits can make it easier to say no to fattening sweets and snacks.
  • “Lose weight permanently! Never diet again!”
    Even if you’re successful in taking the weight off, permanent weight loss requires permanent lifestyle changes. Don’t trust any product that promises once-and-for-all results without ongoing maintenance.

What about miracle creams? Probably false too, so read more

News

No More Sweetened Saturday Morning Commercials

This morning I woke up to news of the changing face of children's television programming - or at least children's television commercial programming.

This morning I woke up to news of the changing face of children's television programming - or at least children's television commercial programming. A group of 11 food companies - including McDonald's, Coca-Cola, and Kellogg's - have announced voluntary limits in marketing towards children. This move is seen as a pre-emptive measure so that the Federal Trade Commission - who is holding a hearing on the subject - will not place regulatory rules that may ban all junk food advertising to children. Sort of a "see, we're good guys don't make us stop!" type of thing.

So what does this mean for children's television? Well, the companies have agreed to stop advertising to children under 12 products that do not conform to a set of nutritional standards. However, it's only for children's programming, not family-friendly programming.

For example, while General Mills will no longer be advertising Trix to the 12-and-under crowd, it will continue to peddle Cocoa Puffs, which have one less gram of sugar per serving. And it will be able to continue advertising Trix on television shows and other media that are considered to cater to “families” rather than just children.

To learn more about the self-regulated ban, read more

milk

Say GoodBye to the "Milk Your Diet" Ads

Have you seen these ads?

Have you seen these ads?

Well you won't be seeing them for much longer. The promotional arm of the dairy industry has been asked by the Federal Trade Commission (FTC) to curtail the ad campaign since research doesn't support the claim. It is not much of a surprise that the initial research backing this claim was partially funded by the dairy industry. The ads suggest that three servings of low fat or skim milk dairy products a day can help people become slim. The “Body by Milk” ad campaign that was aimed at teenagers and featured Carrie Underwood will be curtailed as well.

The FTC will still allow the dairy council to continue asserting that adults and children should not avoid milk and milk products because of concerns that they may lead to weight gain. So the research found three servings of dairy doesn't make you gain weight, which is a far cry from the claim that it helps you lose weight.

I for one love milk and dairy products, but I do not like false exaggerated claims to sell me something.