Frito-Lay Is Ordered to Pull Chip Ads
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A federal judge ordered Frito-Lay to stop ads that say Chicago potato chip fans prefer Lay’s over local rival Jays, saying the snack food giant couldn’t prove the claim.
U.S. District Judge Samuel Der-Yeghiayan faulted data cited by Frito-Lay because testers had not screened out participants who were not from Chicago, and because Jays chips were labeled as “unflavored” during the tests, while Lay’s were labeled as “classic,” a tactic the judge called “clearly derogatory.”
Shares of Frito-Lay parent PepsiCo Inc. rose 34 cents to $50.87 on the NYSE.
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