Four Loko's maker has agreed to a series of reforms after allegations that their marketing strategy promoted binge and underage drinking. A settlement was reached in the lawsuit jointly filed by 20 U.S. state attorneys general and the city of San Francisco.
Phusion Projects LLC, the Chicago-based drink manufacturer, denies the claim that they improperly marketed the "alcopop" drink. But in an attempt to play nice, the company agreed not to sell caffeinated alcoholic drinks, not to promote binge drinking or other misuses of alcohol, and accepted marketing limits designed to keep people under 21 from buying alcoholic products.
These limits include a ban on promoting flavored malt beverages on school or college property except at licensed retail establishments. They also can't advertise Four Loko using models or actors under age 25 or who appear to be under age 21.
Phusion also agreed to pay $400,000 to the regulators as part of the settlement.
"We consider this agreement a practical way to move forward and an opportunity to highlight our continued commitment to ensuring that our products are consumed safely and responsibly only by adults 21 and over," said President Jim Sloan in a statement. "Phusion continues to believe, however, as do many people throughout the world, that the combination of alcohol and caffeine can be consumed safely and responsibly."
The company was in the hot seat in 2010 when the U.S. Food and Drug Administration warned the company and rivals that "blackout in a can" drinks combining alcohol and caffeine were unsafe, according to Reuters. Phusion removed the caffeine and the stimulants guarana and taurine from beverages, including Four Loko, that year.
"Alcoholic energy drinks are dangerous - especially for the teenagers and young adults they target," New York Attorney General Eric Schneiderman said. "Today's agreement ensures that one company will no longer market a dangerous product to youth."
Massachusetts banned Four Loko in 2010, and was the fourth state to do so, though the drink is now back on the market with a non-caffeinated formula.
