• July 15, 2011

Ad costs for McDonald's will rise if a California lawsuit over its Happy Meal toy promotions proved successful, a lawyer for the company said in court July 15.

McDonald's is accused of using toys to lure children into its restaurants. A proposed class action lawsuit seeks to stop the company from advertising toys in connection with Happy Meals in California.

At a hearing in a San Francisco federal court, McDonald's attorney Scott Elder said an injunction against advertising Happy Meal toys in California would make the chain unable to purchase ads on a national basis. Buying ads nationally is "a lot cheaper," Elder said, according to Reuters.

McDonald's is asking that the case be litigated in the federal courts, which are viewed by corporate defendants as friendlier than state courts. In order to get the venue change, McDonald's has to prove the lawsuit involves potential costs of over $5 million.

An attorney for the plaintiff, Stephen Gardner, argued that food chains frequently change marketing practices, and that the case should be returned to a California state court. The U.S. District judge did not say whether they would grant the McDonald's request.--Tanya Irwin