Mcdonald's Food Labeling Case Study

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Spotlight on McDonald’s – Food Labeling This case focuses on McDonald’s Corp.’s Happy Meal that consists of an entrée, a small order of french fries, a small drink, and a toy. McDonald’s started to direct their marketing of the Happy Meal to children between the ages of one to three in the early 1990’s. Later in 1995, McDonald’s released documents known as “McDonald’s Nutrition Facts” that made the nutritional information for its foods products available. While each document provided a list of food items with a nutritional breakdown that the restaurant serves the Happy Meal was not included amongst the documents. Alleging, among other things, that McDonald’s had violated state laws prohibiting consumer fraud and deceptive business practices by failing to adhere to the Nutrition Labeling and Education Act (NLEA) of 1990, Marc Cohen Filed a suit in an Illinois state court. There are definite requirements for products specifically intended for children under the age of four set out …show more content…

It was discovered by a federal regulator from the Office of the Comptroller of the Currency through an audit that the books had been falsified for several years making the bank insolvent. Criminal charges were brought against the managers and the Comptroller closed the bank. Grant Thornton, the bank’s accounting firm, was fined $300,000 by the Comptroller for recklessly failing to meet the generally accepted auditing standards during the years it audited the bank. The Comptroller alleged that Thornton had violated federal law by “participating in unsafe and unsound banking practice” that lead Thornton to appeal, challenging that they were not involved in the bank’s operations to that extent based on its audit function. The legal issue being presented in this case is the extent of an accountant’s

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