In a competitive business world, where every firm is looking to increase their market share, sometimes ethics can come into question. In the case of Nutella, which is made by Ferrero USA, mislead consumers into thinking that their product was quite healthy, when it actually it is not as wholesome as advertised. Nutella is mainly advertised to parents and preach that their product is an essential part of a balanced breakfast for their children, who will also love the taste. However, Nutella contains 55% processed sugar, which can cause severe health issues such as type 2 diabetes. Clearly, some people have been mislead to purchase this product due to the fact that they thought they were buying a chocolate spread that was healthy and their children would enjoy. Ferrero USA has paid the consequence by losing a $3 million lawsuit, where defendants who qualify will be able to reclaim a small amount of money. In addition, the company is no longer allowed to position their product as a healthy one by saying that it has “quality ingredients” and that “it is a part of a balanced breakfast”.
This lawsuit really reflects poorly upon the company as they mislead their consumers to purchase their product (at a premium compared to other similar spreads) due to marketing it as healthy. The issue of false advertising is becoming more prominent as businesses are trying to get the upper hand and gain market share. Hopefully after this case, companies will reconsider their marketing plans to ensure that the consumer is not leading into believe false facts about the product they are purchasing.