Uncertainty In Store For Consumer Protection Settlements

Law360, New York (August 16, 2012, 1:12 PM EDT) -- In a July 13, 2012 decision that may complicate settlement of future consumer protection class actions, the U.S. Court of Appeals for the Ninth Circuit rejected a $10.6 million settlement reached in Dennis v. Kellogg Co.[1]

The putative class action against Kellogg Co. involved allegations that Kellogg had engaged in deceptive advertising of its Frosted Mini-Wheats cereal by making unfounded claims regarding the cereal’s impact on the ability of children to concentrate at school.

The rationale for rejecting the settlement is that it would not sufficiently...
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