The Federal Trade Commission has given final approval to a consent agreement with The Eskimo Pie Corporation, settling charges that it made false and misleading claims in advertising that its "Sugar Freedom" line of frozen dessert products is low or significantly reduced in calories, and that it is approved or endorsed by the American Diabetes Association. The final order also settles charges that Eskimo Pie's failure to disclose that the products contain high levels of both total and saturated fat was deceptive, in light of Eskimo Pie's advertising claims that the line of products is useful or appropriate for diabetics. The Commission's action makes the consent order provisions binding on the respondents.

The Eskimo Pie Corporation is based in Richmond, Virginia. (The American Diabetes Association was not charged with any wrongdoing in this matter.)

The final order prohibits Eskimo Pie from misrepresenting the existence or amount of calories or any other nutrient or ingredient in any frozen dessert product. The company is prohibited from making false claims that any frozen dessert product has been approved, endorsed or recommended by any person, group or organization.

Should Eskimo Pie represent that any frozen dessert is a useful or appropriate part of a diabetic's diet, a provision in the final order requires it to disclose:

• the total fat content, if the product is not low in fat;
  
  
• the saturated fat content, if the product is not low in saturated fat; and
  
  
• that the product is not a reduced-calorie product, if such a disclosure would be required by the Food and Drug Administration on the product's label.

The consent agreement was announced for a public-comment period on May 11, 1995. The Commission vote to issue it in final form occurred on August 11, and was 5-0.

NOTE: A consent agreement is for settlement purposes only and does not constitute an admission of a law violation. When the Commission issues a consent order on a final basis, it carries the force of law with respect to future actions. Each violation of such an order may result in a civil penalty of $10,000.

A news release summarizing the complaint and consent agreement was issued at the time the Commission accepted the consent agreement for public comment. Copies of that release, the complaint and final order are available from the FTC's Public Reference Branch, Room 130, 6th Street and Pennsylvania Avenue, N.W., Washington, D.C. 20580; 202-326-2222; TTY for the hearing impaired 1-866-653-4261. To find out the latest FTC news as it is announced, call the FTC's NewsPhone recording at 202-326-2710. FTC news releases and other materials also are available on the Internet at the FTC's World Wide Web Site at: http://www.ftc.gov

(FTC File No. 942 3044)

(FTC Docket No. C-3597)