Four Loko, FTC Finalize Agreement

WASHINGTONWarning. Four Loko, the 23.5-ounce malt beverage, might give you a buzz.

The Federal Trade Commission says downing the fruit-flavored drink is equivalent to pounding four or five beers, what's known as "binge drinking" the favorite and sometimes lethal pastime of frat boys.

Now, consumers will have a better idea of the content in Four Loko under a modified order the FTC has reached with Four Loko's Phusion Projects, LLC.

Phusion Projects must seek government approval to place an Alcohol Facts panel on its containers, revealing the container size, number of servings in it, alcohol by volume and serving size in fluid ounces. Once it obtains approval from the Department of Treasury's Alcohol and Tobacco Tax and Trade Bureau, the company has 90 days to place the panel on its product.

Phusion Projects was accused by the FTC of violating federal law by making false and misleading representations, namely claiming its drink contained the equivalent of one or two beers. "In truth, downing the fruit-flavored beverage in one sitting is more akin to drinking four or five beers at once," wrote Lesley Fair, a senior attorney with the FTC's Consumer Bureau of Protection.

The company also has endured private litigation, including a 2011 class-action lawsuit filed in California and a complaint that same year by the family of a Virginia teenager who alleged died after drinking two cans of a caffeinated alcohol drink. In the previous year, Four Loko received a warning letter from the U.S. Food and Drug Administration over concerns related to the combination of alcohol and caffeine.

Jaisen Freeman, one of the co-founders of Phusion Projects, said he disagreed with the FTC's allegations but "consider this agreement a practical way to move forward."

Under the deal with the FTC, Phusion Projects will give consumers the option to reseal containers for some of its malt-flavored beverages.

"We share a common interest with the FTC in providing consumers with information and packaging options to help them make informed, responsible decisions," Freeman said.