FTC Charges President of Company That Marketed Dry Milk Product
with Making Unsubstantiated Claims about His Product
FTC Accepts Consent With Second Officer Settling Identical Charges
FTC News Release
September 10, 1985
The Federal Trade Commission today issued an administrative complaint charging Roy Brog, president of Meadow Fresh Farms Inc., a nationwide company that marketed a dry milk substitute, with making unsubstantiated claims about the product's shelf life and its ability to reduce cardiovascular disease.
At the same time, the FTC accepted a consent agreement with Larry Brog, formerly chief executive officer of Meadow Fresh, settling Commission charges that he engaged in the same law violations. The consent requires Larry Brog to have scientific evidence for any claims he makes about Meadow Fresh or other food products in the future.
The company sold its product, Meadow Fresh White, a powdered, dairy-based milk substitute, through a distributor network. The FTC charged that the Brogs lacked a scientific basis for their claims that Meadow Fresh White 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 does whole milk. The FTC also charged the Brogs made false claims about the average earnings of distributors by substantially overstating the income they could reasonably expect to earn.
The Commission issues a complaint when it has reason to believe that the law has been or is being violated, and where it appears to the Commission that a proceeding is in the public interest. Such action marks the beginning of a proceeding in which the allegations will be ruled upon after a formal hearing.
The consent agreement with Larry Brog prohibits him from making any claims about health benefits or expected shelf life for Meadow Fresh or other food products unless he has reliable and competent scientific evidence substantiating his claims. The consent also prohibits Brog from excluding some distributors in computing "average" distributor earnings unless he explains the exclusion.
In April, a district court placed Meadow Fresh Farms into involuntary bankruptcy. Meadow Fresh and the Brogs are all based in Salt Lake City.
- FTC File No. 832-3042. FTC Docket No. 9197.
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This page was posted on August 27, 2006.