Kraft, Inc. v. Federal Trade Commission
United States Court of Appeals for the Seventh Circuit
970 F.2d 311 (1992)
Kraft, Inc. (plaintiff) manufactured Kraft Singles, dairy cheese slices required by law to contain at least 51% natural cheese, distinguishing them from cheaper imitation-cheese slices. As imitation slices gained market share by advertising equal nutrition at lower cost, Kraft launched a campaign claiming Singles were superior because they were made from five ounces of milk and therefore had higher calcium content than imitation slices. In reality, roughly 30% of that milk's calcium was lost during cheese processing, so Singles did not actually contain the calcium of five ounces of milk, nor more calcium than most imitation slices. The FTC (defendant) found Kraft's advertising materially misleading in violation of the FTC Act and ordered Kraft to cease and desist; Kraft petitioned for review.
Whether an individual or entity unlawfully engages in unfair and deceptive commercial practices in violation of the Federal Trade Commission Act if the individual or entity induces consumers to purchase products through advertising that is materially misleading.