The manufacturer of the caffeinated alcoholic malt drink called Four Loko has agreed to a series of reforms that will keep the beverage from being marketed to young people.
Chicago-based Phusion Projects LLC, has agreed to stop selling caffeinated alcoholic beverages and will comply with marketing standards to ensure they are not encouraging binge drinking or underage consumption of the alcohol, Reuters reported.
"While our company did not violate any laws and we disagree with the allegations of the State Attorneys General, we consider this agreement a practical way to move forward and an opportunity to highlight our continued commitment to ensuring that our products are consumed safely and responsibly only by adults 21 and over," Phusion President Jim Sloan wrote in a statement, Boston.com reported.
The manufacturer has agreed not to use actors in their commercials that appear to be under the age of 25 and will only promote or distribute the product at licensed retailers. They will also pay a $400,000 settlement, Reuters reported.
In 2010 a number of students were hospitalized after consuming the beverage, calling attention to the dangers of consuming both caffeine and alcohol at the same time. The U.S. Food and Drug Administration warned these types of beverages were unsafe and had them removed from retailers.
"Alcoholic energy drinks are dangerous - especially for the teenagers and young adults they target," New York Attorney General Eric Schneiderman said in a statement, Reuters reported. "Today's agreement ensures that one company will no longer market a dangerous product to youth."
"We consider this agreement a practical way to move forward and an opportunity to highlight our continued commitment to ensuring that our products are consumed safely and responsibly only by adults 21 and over," President Jim Sloan said in a statement, Reuters reported. "Phusion continues to believe, however, as do many people throughout the world, that the combination of alcohol and caffeine can be consumed safely and responsibly."
