Read the Fine Print: Class Action Claims Kellogg’s Promotions Expire Long Before End of Products’ Shelf Life

New to ClassAction.org? Read our Newswire Disclaimer

Many of the promotions offered on packages of Kellogg’s products expire long before the end of their shelf life, a proposed class action claims, alleging the company has deceived consumers who, for the most part, “have no reason to scrutinize the fine print telling them when the promotion expires.” 

According to the 16-page case out of New York, defendant Kellogg Company is “incentivized” to print more product boxes displaying promotions than it will actually be able to sell during a particular period given special offers increase sales of Eggo Waffles, Pop-Tarts, iconic cereal brands and more. The lawsuit argues, however, that Kellogg can end its “false and misleading” labeling practice by simply printing fewer boxes that display promotions based on the number of products the company expects to sell within the time period of the offer.

“Unfortunately for consumers, most of them who buy the products will be unable to receive the free offers made by Defendant,” the complaint claims, arguing Kellogg’s should offer promotions whose expirations are consistent with the shelf lives of certain products. 

The lawsuit relays that annual or semi-annual “on-pack” promotions offering free merchandise are material to shoppers who in the past relied on Sunday circulars and in-aisle coupons in deciding what products to buy. Cited in the complaint is a survey of 1,600-plus U.S. consumers between 18 and 65 years old that found 60 percent of those who responded “prefer on-pack promotions to other methods of learning of promotions of offers.” Further, the suit, citing a report from HelloWorld, says shoppers will choose a product three times more often when offered an extra incentive. 

“The use of promotions is a key factor in the several seconds it takes for shoppers to choose which of the many products to buy,” the suit summarizes.

 As the lawsuit tells it, many Kellogg’s buyers will be unable to receive the free offers made by the defendant because the promotions splashed across boxes of Eggos, Apple Jacks and Corn Pops cereal and other well-known items expire long before the end of the products’ shelf lives.

Highlighted in the lawsuit, for instance, is a 2017 promotion during which boxes of Eggo Waffles displayed an offer for “$5 Off Crayola” when a consumer bought three packs of Eggo Waffles or Pancakes. According to the fine print visible only at the bottom of the box, however, the Crayola offer was valid from June 1 through September 30, 2017, the suit says, noting that the products’ expiration date, stamped on the side flaps, was more than a year after the expiration of the promotion.

The suit goes on to describe another on-pack promotion, printed on Apple Jacks boxes, for “$6 Movie Snack Cash” that was valid only between October 2019 and January 2020 yet displayed on boxes of product not set to expire until September 2020, nine months after the end of the offer. In another instance, Kellogg’s hyped on cereal boxes a movie ticket promotion valid between March and July 2020 even though the products bearing the offer are still on store shelves and far from their expiration dates, the complaint says.

According to the lawsuit, the money-off promotions amount essentially to Kellogg’s making a “free” offer to shoppers. The complaint says these types of offers are subject to regulations set by the Federal Trade Commission (FTC), who recognized that such deals “must be made with extreme care so as to avoid any possibility that consumers will be misled or deceived.” From the case: 

“The FTC’s rules require that ‘Free’ offers disclose all terms and conditions required to obtain the good or service offered ‘should be set forth clearly and conspicuously at the outset of the offer so as to leave no reasonable probability that the terms of the offer might be misunderstood.’ 

This means that all the relevant terms ‘should appear in close conjunction with the offer of ‘Free’ merchandise or service.’”

Though the front of boxes of Kellogg’s products bearing the “free” offers display small text detailing the dates between which the promotions are valid, the font size is “minuscule and set apart” from the more prominently displayed “free” offer, the lawsuit says. The result is that consumers are deceived given the offer specifies what they will receive, such as money toward Crayola products or movie tickets, while directing them to other parts of the packaging for more details, the suit contends.

Moreover, the defendant’s products are for sale for so long after a promotion has expired that shoppers “instinctively believe the conspicuous ‘Free’ offers are still valid,” the complaint claims, waging that shoppers expect large companies to be capable of adequately estimating the number of products that will be sold during a period in which an offer is valid, and not overproduce certain items. 

“Defendant should offer promotions that expire consistent with the shelf-life of the Products, because not doing so is unfair and misleading to shoppers,” the lawsuit argues. 

Kellogg’s was able to sell more of its products displaying offers, and at higher prices, than it would have in the absence of the alleged misconduct, according to the suit. 

Get class action lawsuit news sent to your inbox – sign up for ClassAction.org’s newsletter here.