A California resident has filed a putative statewide class action against
PepsiCo, Inc., alleging that the company “touts Pepsi One as follows—‘Full
Flavor and One Calorie are now living in complete harmony inside Pepsi
One—the drink that unites the taste of regular cola with all the things you
like about diet cola’”—without disclosing that it contains the caramel-coloring
chemical 4-methylimidazole (4-MEI), identified by the state as a carcinogen
under the Safe Drinking Water and Toxic Enforcement Act of 1986 (Proposition
65). Ree v. PepsiCo, Inc., No. 14-0328 (C.D. Cal., filed March 4, 2014).
According to the complaint, the absence of the disclosure “was a material and
substantial factor which influenced [the plaintiff’s] decision to purchase Pepsi
One. In fact, Plaintiff would not have purchased the Product had she known
that it contained 4-MEI well in excess of Proposition 65 guidelines.”

The plaintiff includes information from a Consumer Reports article about
the chemical to support her claim that the failure to disclose was false and
misleading. Alleging violations of the California Unfair Competition Law and
Consumers Legal Remedies Act, untrue and misleading advertising, breach of
contract, intentional and negligent misrepresentation, unjust enrichment, and
breach of express warranty, the plaintiff seeks injunctive relief, restitution and
disgorgement, an accounting, attorney’s fees and costs.

 

Issue 517

About The Author

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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