Reference no: EM131157144

Kraft, Inc.’s individually wrapped cheese slices, or “Singles Slices,” which are made from real cheese, cost more than the imitation cheese slices on the market. In the early 1980s, Kraft began losing its market share to an increasing number of producers of imitation cheese slices. Kraft responded with a series of adver­tisements, collectively known as the “Five Ounces of Milk” campaign. The ads claimed that Kraft Singles cost more than imitation slices because they were made from five ounces of milk rather than less expensive ingredients. The ads also implied that because each slice contained five ounces of milk, Kraft Singles contained a higher calcium con­tent than imitation cheese slices. In fact, however, roughly 30% of the calcium contained in the milk was lost during processing, a fact that Kraft did not disclose to consumers. The Federal Trade Commission (FTC) filed a complaint against Kraft, charging that Kraft had materially misrepresented the calcium content and relative calcium benefit of Kraft Singles. Was Kraft’s advertising campaign decep­tive and likely to mislead consumers?