DALLAS Frito-Lay has reached an out-of-court settlement with Chicago rival Jays over ads that claim Chicagoans prefer Lay's potato chips.
The ads, developed by Spike DDB of New York, appeared on Chicago billboards and radio until Jays won a court order July 22 halting the campaign.
In the settlement, Plano, Texas-based Frito-Lay, a unit of PepsiCo, will pay the legal expenses of Jays and will not run comparative ads for two years, according to the Chicago Tribune. Frito-Lay also issued an apology after two radio stations ran the ads, violating a court order from U.S. District Judge Samuel Der-Yeghiayan.
Although Frito-Lay cited research showing that 55 percent of Chicagoans preferred Lay's, Der-Yeghiayan called the results misleading and said testers had not screened out participants who were not from Chicago. Guideline Research of New York conducted the study.