May 2, 2008

Court orders Tyson to stop antibiotic claims on chicken

A federal appeals court has refused to block an order barring Tyson Foods (TSN) from advertising that its poultry products do not contain antibiotics.

The Fourth Circuit Court of Appeals in Richmond, Virginia, denied Tyson's appeal Thursday. Tyson had asked the court to stay a ruling by a federal judge in Baltimore, who issued a preliminary injunction last week.

The lower court ruling was a victory for rivals Perdue Farms and Sanderson Farms, who sued to stop the advertisements.

The two companies say the advertisements are misleading because none of the companies uses antibiotics and shoppers could be led to think other companies use them.