McDonald's Back In The Firing Line Over Happy Meal Ad

McDonald's Corporation (NYSE: MCD) has been struggling to get back on track after a shift in preference toward healthier food with "real ingredients" among Americans contributed to a major slide in the company's U.S. sales.

In April, the fast-food chain reported that its sales had declined by 2.3 percent, something that has pushed the company to revamp its menu and rework its image. However, the Golden Arches are back under the microscope this week after accusations that one of its TV ads didn't meet the Children's Advertising Review Unit's guidelines.

Too Much Attention On The Toy

The CARU said that a McDonald's TV commercial advertising Happy Meals put too much focus on the "Teenie Beanie Baby Boo" toy being offered rather than the food itself. The organization is responsible for making sure that advertising aimed at children follows specific guidelines, which it said McDonald's did not. Instead, CARU said the ad did not use the toy to enhance the appeal of its food, but made children focus on getting the toy inside of a Happy Meal rather than food. In doing that, the organization said children wouldn't be able to distinguish whether the toy or the meal was a McDonald's product.

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McDonald's To Be Cautious In Future Ads

McDonald's responded by saying that the company believed that its ad was within the guidelines and that making the food appealing to children was the main objective. As the commercial is no longer running, McDonald's said it will take the CARU comments into consideration when producing future Happy Meal advertisements.

Shares of McDonald's are up about 4 percent in 2015, but down 5 percent over the last 52 weeks.