BOSTON (MyFoxBoston.com) -- The makers of Four Loko, the once-popular malt beverage, agreed to pay $400,000 in a multi-state settlement that included Massachusetts over allegations that the company unlawfully marketed the drink.
The beverage gained popularity in 2010 among college students and gained a reputation for being a "blackout in a can," because of its elevated alcohol levels - it contained up to four times the alcohol content than some beers - and high caffeine levels.
At the time, a number of colleges and universities sent letters to students warning them about Four Loko, or banned the drink outright. In December 2010, after being banned in several states, Phusion Products LLC removed caffeine, taurine, and guarana as ingredients in the malt beverage.
19 state attorneys general, including Massachusetts Attorney General Martha Coakley joined together to sue Phusion, alleging that "it unlawfully marketed its flavored malt beverages, promoted the misuse of alcohol by underage individuals, and failed to disclose the effects of drinking alcoholic beverages combined with caffeine."
Phusion agreed to change how it markets Four Loko and its other flavored malt beverages. The company also agreed not to hire models for promotional materials who are under the age of 25, use college logos or mascots in promotions and promoting Four Loko and its other drinks on schools or college property, except at liquor stores and other retail establishments that sell alcohol.
"Binge drinking and underage drinking are public health concerns, and it is essential that companies market their products responsibly, particularly when they are selling alcoholic products that may appeal to minors," Coakley said in a statement.
Cox Media Group
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