The US-based Constellation Brands, which owns Australia's second-largest wine business, Hardy Wine Company, has agreed to settle charges brought by the US Federal Trade Commission over advertising for its caffeinated-alcohol drink Wide Eye.
The FTC charges were that advertising for the caffeine-based beverage was "deceptive, unsubstantiated, and in violation of federal law".
The proposed settlement between the company and the regulator bars Constellation Brands from making the deceptive claims. The claims included that consumers who drink Wide Eye would remain alert when consuming alcohol.
"Constellation Brands fueled the misperception that mixing alcohol and caffeine helps people stay alert," said Eileen Harrington, acting director of the FTC's Bureau of Consumer Protection. "The truth is that alcohol and caffeine could be a dangerous mix, and a claim like that can have very serious consequences."
Constellation Brands promoted Wide Eye in web videos and other internet advertising, as well as in print ads.
According to the FTC's complaint, there was no credible scientific evidence to support the claim that consumers who drink Wide Eye would remain alert.
In the US, a consent agreement is for settlement purposes only and does not constitute an admission of a law violation.
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