Nutella's ads sold a 'healthy breakfast' — Ferrero paid $3M to say it differently

Ferrero's TV commercials sold Nutella as the ideal start to a child's day: a 'healthy breakfast', a 'good-for-you treat', made with 'simple, quality ingredients like hazelnuts, skim milk and a hint of cocoa'. What the jars did not say was what the spread mostly was: sugar and fat — closer to dessert than to breakfast.

A California mother sued, saying she was 'shocked' by what the claims concealed, and two class actions followed — one nationwide, one California-only, covering purchases from 2008 and 2009 respectively. In April 2012 Ferrero settled for more than $3 million and agreed to change its marketing campaign, modify its labels, produce new TV ads and update its website; class members received refunds of about $4 a jar.

Ferrero denied wrongdoing and stood by its product; the settlement bought the right to move on with new advertising. For the food aisle the arithmetic was plain: a health claim is measured against the nutrition panel, not against the ingredient list on the commercial.