ATLANTA .… Georgia Secretary of State Cathy Cox today announced the resolution of a several-months-long investigation into a General Mills’ Yoplait Yogurt charitable promotion that has resulted in the company contributing an additional $63,000 to the Breast Cancer Research Foundation (BCRF).

In its investigation, the Secretary of State’s office concluded that certain features of Yoplait’s "Save Lids to Save Lives" national charitable promotion conducted between January and March 1999 were deceptive and misleading to Georgia consumers.

State regulators’ concerns centered on the wording of messages on Yoplait Yogurt containers that caused consumers to believe that a contribution of 50 cents per lid would be made for each unit of Yoplait purchased during the period. In fact, General Mills had agreed to a maximum donation to BCRF of $100,000 regardless of the number of lids returned. A disclaimer that revealed this limitation appeared on the underside of the lids, and was only visible to consumers after they had already purchased the product.

As part of its promotion, General Mills also retained actress Diahann Carroll to participate in television interviews, including one that aired in Georgia, in which she discussed the promotion and referred to the 50-cents-per-lid return rate. Ms. Carroll made no reference to the maximum contribution limitation.

In its investigation, Secretary Cox’ office found that approximately 9.4 million lids were returned nationwide by consumers during the course of the promotion. Had General Mills made a charitable contribution of 50 cents for each lid, as the Secretary of State asserts purchasers had been led to believe, the campaign would have resulted in a contribution of $4.7 million to BCRF, ($4.5 million more than actually received by the charity).

Approximately 1.32 percent of Yoplait’s national sales during the period occurred in Georgia. In resolving the matter with General Mills, the Secretary of State devised a formula multiplying 9.4 million lids nationally times 1.32 percent (representing Georgians’ estimated participation) times 50 cents per lid to derive the additional contribution amount of $63,000.

"I am pleased that we have been able to successfully resolve this investigation without the need for lengthy and costly litigation," said Secretary of State Cox. "This agreement, in our view, fulfills the expectations of Georgia consumers when they purchased Yoplait Yogurt during the campaign and sent in their lids anticipating that each one would result in a 50 cent contribution to breast cancer research. The agreement we have entered into makes good on that promise," Secretary Cox added.

"Corporate contributions are essential to the success and wellbeing of thousands of charitable organizations, and we commend corporate givers for the difference they make on behalf of many worthy causes. But when corporate donations are tied to sales promotions, and consumers make purchase decisions based upon an expectation of specific charitable support, it is essential that those promotional programs clearly identify how much will be contributed and how the calculations will be made. Simply put, we welcome and encourage corporate support for charity, but we must also make sure that Georgia consumers are not misled by sales promotions that feature a charitable component," Secretary Cox added.

Secretary Cox noted that she is aware of a number of Georgia schools and children’s service organizations that participated in the campaign with the expectation that each Yoplait lid collected would result in incremental 50-cent contributions to fund breast cancer research.

In a letter dated December 20, 1999, signed by Secretary Cox and General Mills’ general counsel Siri S. Marshall, the State agreed to conclude its investigation and General Mills agreed to make an additional $63,000 contribution to BCRF, and to reimburse the state for its investigative costs. In the agreement, General Mills made no admission of wrongdoing and disputed the Secretary of State’s contention that the campaign was deceptive.

Secretary Cox noted that a second phase of the "Save Lids to Save Lives" Yoplait promotion, executed in the Fall of 1999 well after the state’s investigation had begun, included an appropriate disclaimer and was not deceptive.

General Mills indicated that because the response to the January – March "Save Lids to Save Lives" campaign exceeded expectations, the company had contributed an additional $100,000 (bringing its total support to $200,000) in June of this year.

The Secretary of State’s Securities and Business Regulation Division regulates charities and charitable solicitations in Georgia. Secretary Cox noted that her office’s agreement with General Mills concerning the "Save Lids to Save Lives" promotion solely applies to Georgia and does not address regulatory issues in other states.

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