A California federal court has denied a proposed settlement in a consumer class action alleging Annie Chun's® soup products, made by CJ America Inc., either contain monosodium glutamate or ingredients that produce the substance during the cooking process despite being labeled as "No MSG Added." Petersen v. CJ America Inc., No. 14-2570 (S.D. Cal., order entered December 16, 2015). The court rejected the bid to certify the class for purposes of the settlement, finding the plaintiff had shown that the South Korean company was subject to jurisdiction in California but not necessarily other states, thus precluding the approval of a nationwide class. The parties reached the proposed settlement in November 2015. Additional details appear in Issue 584 of this Update. Issue 588
Posts By Shook, Hardy & Bacon L.L.P.
The Seventh Circuit Court of Appeals has upheld an Indiana law restricting the sale of cold packaged beer in convenience stores, pharmacies and groceries in incorporated towns, finding that the statute survives a rational-basis analysis. Petroleum Mktrs. & Convenience Stores Assoc v. Cook, No. 14-2559 (7th Cir., order entered December 14, 2014). The court found that although Indiana does not have "nearly absolute" power to regulate alcohol sales as the state had argued, it may prohibit stores from selling cold beer, even if it also allows the same stores to sell chilled beverages with higher alcohol content such as wine coolers. The court distinguishes between the licenses required by liquor stores, which can sell cold beer, and the licenses available to convenience stores and similar retailers; liquor stores "are subject to stricter regulations designed to enhance the State's ability to limit and control the distribution of alcohol," including minimum ages…
Nine putative class actions and 44 related cases alleging that StarKist Co., Bumble Bee Foods LLC and Tri-Union Seafoods LLC conspired to fix prices of canned tuna have been consolidated by the U.S. Judicial Panel on Multidistrict Litigation. In re Packaged Seafood Prods. Antitrust Litig., No. 15-2670 (S.D. Cal., order entered December 9, 2015). The court found that the actions "share factual questions arising out of an alleged conspiracy by defendants—the three largest producers of packaged seafood products in the U.S. with an alleged collective market share of more than 70%—to fix prices of packaged seafood products." The court also noted that the issue is "the subject of an ongoing criminal investigation by the U.S Department of Justice." Additional details about one of the proposed class actions appears in Issue 574 of this Update. Issue 588
A South Carolina federal court has ruled that the U.S. Food and Drug Administration (FDA) was not negligent in issuing a tomato recall during a 2008 outbreak of Salmonella, dismissing a tomato farm's claim of $15 million in damages. Seaside Farm Inc. v. U.S., No. 11-1199 (D.S.C., order entered December 16, 2015). The farm had argued that FDA should have been more specific in its recall, while FDA argued it never issued an official recall, only warnings about tomatoes. The court had previously dismissed allegations of defamation and takings against the government. Issue 588
The Philippine Supreme Court has reportedly invalidated a 2002 governmental regulation allowing the import of genetically modified organisms (GMOs) after Greenpeace and a farmer's group challenged the field testing of a GMO eggplant (talong). The ruling affirms a lower court's 2013 decision finding "no full scientific certainty yet as to the effects of Bt talong field trials to the environment and to the health of the people" and noting that existing regulations did not do enough to protect Philippine environment and health. "This decision builds on a wave of countries in Europe rejecting [genetically engineered (GE)] crops, and is a major setback for the GE industry,” said a Greenpeace Philippines spokesperson in a December 11, 2015, press release. "The Philippines has been used as a model for GE regulatory policy around the world, but now we are finally making progress to give people a right to choose the food they…
The Food Standards Agency’s independent Advisory Committee on Novel Foods and Processes (ACNFP) will host a February 4, 2016, workshop in London. Breakout sessions will target (i) the food-medicine continuum; (ii) alternative proteins, e.g., insects and in vitro meat production; and (iii) engineered nanomaterials. Registrations are requested by January 14, 2016. See ACNFP News Release, December 14, 2015. Issue 588
The National Advertising Division (NAD), an arm of the advertising industry's self-regulation system, has concluded Saputo Cheese, USA, Inc. can support its claims that its string cheese is "natural" and "low-moisture part-skim mozzarella cheese" despite challenger Lactalis American Group’s argument that Saputo’s products contain artificial phosphate and fillers. Lactalis argued Saputo's products do not comply with the U.S. Food and Drug Administration's (FDA's) standard of identity for "low-moisture part-skim mozzarella cheese" and the products could not be "natural" as their packaging asserts because of the addition of phosphate. Saputo argued phosphate occurs naturally in cheese and the existence of phosphate did not necessarily prove the company added synthetic phosphate. In its determination, NAD acknowledged that it did not have the authority to deem something "misbranded" under FDA's regulations but noted that the products seemed to fit the standard of "low-moisture part-skim mozzarella cheese" because they contain 30 to 45 percent…
Two app developers have agreed to pay a combined $360,000 to settle Federal Trade Commission (FTC) charges that they allegedly violated the Children's Online Privacy Protection Act (COPPA) by producing and selling games allowing third-party advertisers to collect personal information from children. The games, which include My Cake Shop, My Pizza Shop, Ice Cream Jump and Happy Pudding Jump, appeared to target children younger than age 14, but the app developers apparently failed to inform advertisers of that fact, which would have required them to comply with FTC and COPPA regulations. "It's vital that companies understand the rules of the road when it comes to handling children's personal information online," FTC Bureau of Consumer Protection Director Jessica Rich said in a December 17, 2015, press release. "These cases make it clear that we're closely watching this space to ensure children's privacy online is being protected." Issue 588
The U.S. Food and Drug Administration (FDA) has published its annual report of sales and distribution data for antimicrobial drugs used in food-producing animals. The report’s analysis of 2014 statistics and observed trends of rising antibiotic use immediately drew the ire of consumer advocacy coalition Keep Antibiotics Working (KAW). “The data released today shows us that, despite industry assurances to the contrary, the use of human antibiotics on the farm have continued to rise, and specifically the use of the critically important antibiotic class cephalosporins (12% increase from 2013 through 2014), which the FDA placed restrictions on in 2012,” a KAW policy analyst said. KAW condemns industry’s voluntary cutbacks and calls for FDA to establish mandatory reduction goals. “FDA must set clear targets for the reduction in antibiotic use,” according to KAW. “Otherwise, industry will continue to conduct business as usual, while the crisis of resistance continues to loom large…
The U.S. Food and Drug Administration (FDA) has reportedly reached a deal with Hampton Creek, maker of eggless spread Just Mayo®, allowing the company to keep the name of its product but requiring changes to its packaging. Just Mayo® labels will now feature larger words touting its features, including "egg-free" and "spread and dressing," and a definition of "just" as "guided by reason, justice, and fairness." The product has been the target of litigation in recent years, including a lawsuit by competitor Unilever and a putative class action, because of the alleged misrepresentation of the product as mayonnaise despite its noncompliance with FDA’s standard of identity for mayo, which requires the inclusion of eggs. Hampton Creek was also allegedly the target of a smear campaign by the American Egg Board. Additional details appear in Issue 578 of this Update. Issue 588
