Public sentiment so far is on the Cheerios side following the Food and Drug Administration's warning to General Mills of "serious violations" arising from Cheerios' cholesterol-reduction claims, Emily Bryson York and Rich Thomaselli report. "It think the FDA got it wrong on this one," says supermarket expert Phil Lempert, who suggests that the Obama administration is doing some chest-pounding by going after a major brand. Although revamping packaging and its marketing message may cost GM millions, Lynn Dornblaser, director of consumer package goods insight at Mintel, points out that it has already accomplished its mission. Consumers have gotten the message …

Burger King told franchisees last month that, starting in February 2010, it wants 40% of millions of dollars in annual rebates that franchisees get from soda companies to apply toward national advertising. Now the National Franchisee Association has filed a class action suit in U.S. District Court, Southern District of California, against BK, Coca-Cola and Dr Pepper Snapple Group, arguing that the payments to 850 franchisees cannot be eliminated or reduced without their consent, Elaine Walker reports. The "restaurant operating funds" are based on the amount of soft drink syrup the operators purchase. The money has been used to …

Shirley S. Wang weaves a cautionary tale of how product endorsements can go awry by looking at Bristol-Myers Squibb's relationship with Andy Behrman, a 42-year-old bipolar patient and book author who touted the drug Abilify for several years to the tune of $400,000. But when Behrman's contract ran out, he began talking about side effects such as dazed spells that he says caused him to stop taking the drug even while he was promoting it. Patient testimonials have become an important part of the nearly $60 billion a year that drug makers spend annually marketing their products -- twice what …

The beaches, bars and hotels of Cancun are nearly empty, Jason Beaubien reports, as tourists have cancelled their planned vacations in reaction to the swine flu outbreak that originated in Mexico in April. Mexico's tourism minister, Rodolfo Elizondo, predicts that the number of international visitors could drop in the coming weeks to "almost zero." Tourism is Mexico's third-largest source of revenue, and the Cancun region relies on tourism like no other place in Mexico. It was conceived and developed by the Mexican government in the 1970s as an international beach resort on what was then a desolate strip of …

Marketers are taking more jabs at their competitors in advertising, and the rivals are striking back through the courts or by filing complaints with the National Advertising Division of the Council of Better Business Bureaus, Theresa Howard reports. The NAD has already logged 37 claims from marketers this year vs. 84 for all of 2008. "With the slightest hint of denigration, people are challenging each other," says NAD director Andrea Levine. Current cases include Cadbury challenging Wrigley's ads for Eclipse gum, which the NAD ruled had "methodological flaws" and Whirlpool challenging Electrolux' claim that its cooking range "boils water …