Four Loko Maker to Pay $400K in Marketing Settlement

Twenty states have reached an agreement with Phusion Projects, the makers of Four Loko fruit-flavored malt beverages. The agreement is meant to ensure that Phusion Projects' social media marketing isn't aimed at underage drinkers. The company will pay $400,000 to authorities.

ALBANY, N.Y. (AP) — New York is among 20 states that have reached agreement with the makers of the fruit-flavored malt beverages Four Loko meant to ensure marketing through social media isn't aimed at underage drinkers.

Under the agreement, Chicago-based Phusion Projects admits no wrongdoing but will pay $400,000 to authorities.

The company agrees not to sell alcoholic beverages containing caffeine, an ingredient it previously removed, or to promote sales to anyone underage or on school or college property except at retail establishments licensed to sell alcohol.

Phusion also agrees to remove from its websites and social media any postings that depict or condone misuse of alcohol.

The company calls the agreement a practical way to move forward.

New York Attorney General Eric Schneiderman says "alcoholic energy drinks" are dangerous, especially for minors.