The Cornucopia Institute, a consumer watchdog and proponent of “family-scale farming,” has reportedly filed a complaint with the Federal Trade Commission (FTC), alleging that an Oregon-based cereal maker is misleading consumers with its “all natural” product claims. According to the institute, Hearthside Food Solutions, which makes Peace Cereal, labels its products as “natural” and then states on its website that “natural foods are foods without pesticides or artificial additives, as well as being minimally processed and preservative-free.” Noting that the federal government has not adopted a definition of or requirements for “natural” food products, the Cornucopia Institute alleges that by using conventionally grown food ingredients, Hearthside is selling products routinely sprayed with pesticides and herbicides.

Peace Cereal was apparently certified organic in the past, but has not been
since 2008. Yet, according to the Cornucopia Institute, stores in several states
continue to carry “organic” signs on shelves containing nonorganic Peace
Cereal and mislabel as organic bulk bins with Hearthside’s nonorganic
granola. Cornucopia’s co-director Mark Kastel said, “We view this company
as a ‘bad actor.’ This company is clearly trying to profit from the good name
and reputation of organics, and exploiting consumer trust.” The institute calls
on FTC to investigate the claims, saying the company is falsely implying to
consumers that its products, often higher priced than organics, are organic.
Studies have reportedly shown that consumers are confused about the
“natural” label. See Cornucopia Institute Press Release, February 18, 2011;
Portland Press Herald, March 8, 2011.

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For decades, manufacturers, distributors and retailers at every link in the food chain have come to Shook, Hardy & Bacon to partner with a legal team that understands the issues they face in today's evolving food production industry. Shook attorneys work with some of the world's largest food, beverage and agribusiness companies to establish preventative measures, conduct internal audits, develop public relations strategies, and advance tort reform initiatives.

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