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Direct-to-consumer advertising discouraged: Academy wins infant-formula lawsuit

The Academy did not conspire to prevent Nestlé Food Co. from selling infant formula in the United States, a jury has decided.

Nestlé Food Co. claimed that the Academy conspired with Abbott Laboratories and other firms to prevent Nestlé from entering the U.S. infant-formula market by prohibiting infant-formula consumer advertising.

Nestlé sought more than $250 million in actual damages from the Academy and Abbott. If Nestlé had won the lawsuit, the firm could have been awarded more than $750 million in damages, because U.S. antitrust laws stipulate that actual damages are automatically tripled.

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