Tag Archives California

A putative class action has been filed against Kellogg USA alleging that, by calling its cereal “Froot” Loops® and including “pictures of brightly colored cereal made to resemble fruit” and actual fruit on product packaging, the company is deceiving the reasonable consumer who is led to believe the cereal contains fruit. Werbel v. Kellogg USA, No. 10-1660 (N.D. Cal., filed April 19, 2010). The named plaintiff relies on a Strategic Alliance for Healthy Food and Activity Environments study which purportedly revealed that this cereal, like many others, contains no fruit whatsoever despite packaging and advertising suggesting its presence. The plaintiff seeks to certify a class of California consumers who purchased the product in the four years preceding the lawsuit’s filing; he alleges unlawful, unfair and deceptive advertising and promotion in violation of the state’s Business & Professions Code , intentional misrepresentation, breach of implied warranties, and violations of the Consumers Legal…

The University of California-San Francisco Program on Reproductive Health and the Environment has developed draft policy recommendations to address potential health risks from nanomaterials and nanotechnology. When finalized, the document will be presented to California EPA’s Office of Environmental Health Hazard Assessment (OEHHA) to better inform the agency’s risk assessment recommendations. The draft will be considered during a Science Advisory Panel meeting on May 5, 2010, and all public comments are due on that date. Among the recommendations for OEHHA in the draft report are to (i) assess whether nanomaterials are already covered under the agency’s existing policy structure, (ii) determine if nanosized materials are more toxic than “their bulk material,” (iii) identify the extent of nanomaterial use in products, including food contact materials and foods, and (iv) “require labeling for nanomaterials that contain known carcinogens or reproductive effects.”

A federal court in California has dismissed a lawsuit that the Center for Science in the Public Interest (CSPI) filed against a company which claimed its multivitamin supplements supported prostate health or reduced the risk of prostate cancer. CSPI v. Bayer Corp., No. 09-05379 (N.D. Cal., decided March 25, 2010). The court determined that CSPI could not bring claims under California’s Unfair Competition Law (UCL) or its Consumer Legal Remedies Act (CLRA) in a representational capacity on behalf of consumers. The court also found that the organization lacked standing to sue on its own behalf. According to CSPI’s complaint, the company’s conduct interfered with its mission to “provide useful, objective, and safe information to the public.” The court found that these allegations of injury were insufficient to demonstrate cognizable injury for the organization to sue on its own behalf under the UCL, which requires an action to be brought by a…

The Ninth Circuit Court of Appeals has lifted a preliminary injunction that prevented California from enforcing a law adopted after The Humane Society’s video of the mistreatment of downer cattle at a slaughterhouse became public and led to a massive beef recall in 2008. Nat’l Meat Ass’n v. Brown, 09-15483 (9th Cir., decided March 31, 2010). The National Meat Association challenged California’s law, which prohibits slaughterhouses from receiving, processing or selling nonambulatory animals, as preempted by the Federal Meat Inspection Act (FMIA), and the district court agreed. The state law also prohibits moving a nonambulatory animal without a sling or other sled-like or wheeled conveyance. According to the Ninth Circuit, the federal law, which contains an express preemption provision, prescribes what is to be done with nonambulatory animals to be slaughtered and sold for human consumption; it does not limit states “in their ability to regulate what types of meat may…

A New York resident has filed a putative class action against Diamond Foods, Inc. in a California federal court alleging that the company labeled its walnuts with false claims that “consumption of the omega-3 fatty acids in walnuts promotes heart health and lowers the risk of coronary heart disease.” Zeisel v. Diamond Foods, Inc., No. 10-1192 (N.D. Cal., filed March 22, 2010). The plaintiff seeks to certify a nationwide class of consumers who purchased the company’s shelled walnut products since March 19, 2006, and claims that he relied on the product labels to make his purchasing decision. The complaint alleges unlawful, unfair and fraudulent business practices; false advertising; violation of California’s Consumer Legal Remedies Act; and unjust enrichment. The plaintiff seeks an order certifying the class, restitution of either the amounts paid to purchase the products or the company’s profits from the transactions, an order enjoining further misleading advertisements, attorney’s…

Cal/EPA’s Office of Environmental Health Hazard Assessment (OEHHA) has scheduled an April 20, 2010, public forum on its proposal to list bisphenol A (BPA) as a reproductive toxin under the Safe Drinking Water and Toxic Enforcement Act of 1986 (Prop. 65). The action was taken in response to a request for a public forum to present oral comments. OEHHA has also decided, in response to a request, to extend the written comment period on the proposal until May 13, 2010. Prop. 65 requires that businesses provide “clear and reasonable” warnings for exposures to listed chemicals before exposure and prohibits their discharge into drinking water sources. OEHHA has also announced that it will conduct an informal public workshop on April 14 to discuss proposed amendments to regulations that “set out the procedures and criteria for determining an exposure level where there would be no observable effect.” Under Prop. 65, warnings are…

A New York resident has filed a false-advertising class action in a California federal court against the companies that make certain ice cream products labeled with the statement “0g trans fat.” Carrea v. Dreyer’s Grand Ice Cream, No. 10-1044 (N.D. Cal., filed March 11, 2010). Seeking to certify a nationwide class of ice cream purchasers, the plaintiff alleges false advertising under the Lanham Act and violations of the California Consumers Legal Remedy Act and the misleading and deceptive advertising provisions of the state Business and Professions Code. The plaintiff seeks a declaration that the defendants have committed the alleged violations, restitution, disgorgement, compensatory and punitive damages, interest, and costs. He also asks the court to order defendants to destroy all misleading and deceptive advertising materials and products. According to the complaint, the plaintiff relied on the alleged misrepresentations to conclude “that the Products were in fact healthy and relied upon…

A federal court in California has dismissed without prejudice some of the claims filed by a food supplier in a dispute over insurance coverage in food-contamination litigation. Nat’l Surety Corp. v. Pacific Int’l Vegetable Mktg., Inc., No. 09-4898 (N.D. Cal., decided March 5, 2010). A fast food restaurant was sued for injuries purportedly linked to foodborne contamination, and it filed a third party complaint against the company that supplied the lettuce which allegedly caused the outbreak. The supplier turned to the lettuce grower’s insurer to defend it under a policy that was supposed to include the supplier as an additional insured pursuant to an agreement between the supplier and grower. The insurer refused to defend the claims, and the supplier sued the agent purportedly responsible for adding the supplier to the insurance policy for breach of contract, breach of the covenant of good faith and fair dealing, breach of fiduciary…

California EPA’s Office of Environmental Health Hazard Assessment (OEHHA) has extended until April 7, 2010, the public comment period on its proposal to add epoxiconazole, a triazole fungicide used on coffee beans and bananas grown outside the United States, to the state’s Proposition 65 (Prop. 65) list of chemicals known to cause cancer or reproductive harm. According to OEHHA, the U.S. Environmental Protection Agency has identified the chemical as likely to be carcinogenic to humans. If the fungicide is added to the list, warnings will have to be provided to California consumers purchasing products containing the substance. See OEHHA News, March 8, 2010.

According to a news source, a putative class action has been filed against E&J Gallo Winery alleging that it falsely labeled and sold its Red Bicyclette® wine as Pinot Noir when the wine was “illegally cut with cheaper Syrah and Merlot grapes.” The action, reportedly filed in Los Angeles Superior Court, follows news that wine makers in France were sentenced for selling the cheaper wine to the company as pinot noir. Additional details about the French scam appear in issue 338 of this Update. Meanwhile, the U.S. Alcohol and Tobacco Tax and Trade Bureau (TTB) has reportedly been investigating the matter with French authorities and may also take action against U.S. wine importers. The bureau was quoted as saying, “TTB is waiting for an official translation of the court documents and has begun investigations to determine the appropriate course of action to take regarding the American importers of these mislabeled…

Close