Four independent US watchdogs claim PepsiCo is using “deceptive and unfair practices” to market its products to teenagers.
The Washington-based Center for Digital Democracy, Consumer Watchdog and two other groups yesterday (19 October) filed a complaint with the Federal Trade Commission (FTC) calling on the agency to investigate PepsiCo and subsidiary Frito-Lay for deceptive and unfair” digital marketing.
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A statement on the Center for Digital Democracy website said the global snacks giant is “disguising” its marketing efforts as video games, concerts and other “immersive” experiences that make it difficult for teens to recognise the content as advertising. It also raised concerns about the way the company collects data.
“PepsiCo’s covert ad campaigns take advantage of teens’ vulnerabilities and encourage them to buy and consume a product that is harmful to their health”, Angela Campbell, a legal adviser for CDD, said.
The complaint focuses on the Frito-Lay online marketing campaigns; “Hotel 626”, “Asylum 626” and “Late Night Concerts” that involve social media, multimedia content, mobile phones and gaming.
Aurora Gonzalez, company spokesperson for Frito-Lay, said: “We are aware of the filing to the FTC and believe it contains numerous inaccuracies and mischaracterisations.
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By GlobalData“PepsiCo and its Frito-Lay division are committed to responsible and ethical marketing practices. Our marketing programs, which are often innovative, comply with applicable law and regulations.”
