Proximo Spirits, Inc. has settled a class action alleging it deceptively marketed Tincup Whiskey® as manufactured entirely in Colorado despite part of its production occurring in Indiana. Aliano v. Proximo Spirits, Inc., No. 14-17429 (Ill. Cir. Ct., Cook Cty., preliminary approval entered September 16, 2015). Proximo has agreed to establish a $425,000 settlement fund to pay class members with proofs of purchase $4.50 and $2.25 to those without, per bottle purchased. In addition, class members who purchased Tincup for on-premises consumption can receive $0.75 up to a maximum of five drinks. Future Tincup labels will no longer feature claims that the product was manufactured entirely in Colorado and instead must identify the state or states where Proximo manufactured the product. Issue 580
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Sazerac Co., maker of Fireball Cinnamon Whisky®, and Stout Brewing Co. have filed a joint stipulation of dismissal with prejudice in a lawsuit alleging that Stout infringed Sazerac’s trademark by selling a malt specialty beer called “Fire Flask.” Sazerac Co. Inc. v. Stout Brewing Co. LLC, No. 15-0107 (W.D. Ky., stipulation filed September 24, 2015). Stout has reportedly agreed to stop selling its existing Fire Flask products and will redesign the label for future production. Each party will pay its own attorney’s fees and costs. Additional details on the August 2015 complaint appear in Issue 576 of this Update. See Law360, September 24, 2015. Issue 580
A Florida federal court has dismissed five putative class action claims, allowing one to continue, against Fifth Generation Inc. in a lawsuit alleging Tito’s® Handmade Vodka is not actually made by hand in “an old fashioned pot still” and thus is deceptively marketed. Pye v. Fifth Generation Inc., No. 14-0493 (N.D. Fla., order entered September 23, 2015). The court cited its May 2015 decision in Salters v. Beam addressing similar claims against Maker’s Mark®, finding that “[m]uch of the analysis here repeats what was said there.” Details about that decision appear in Issue 564 of this Update. The plaintiffs alleged that “handmade” means “made from scratch” or “in small units,” with human involvement in the process. The court disagreed, finding, “No reasonable person would understand ‘handmade’ in this context to mean literally made by hand. No reasonable person would understand ‘handmade’ in this context to mean substantial equipment was not…
A California federal court has denied class certification in a lawsuit consolidated from four separate actions alleging that Hain Celestial Seasonings Teas were produced from ingredients sprayed with pesticides and contained pesticide residue, thus allegedly precluding Hain from labeling its teas as “natural.” In re Hain Celestial Seasonings Prods. Consumer Litig., No. 13-1757 (C.D. Cal., order entered September 23, 2015). In its answer to the complaint, Hain argued the plaintiffs conflated the definitions of “natural” and “organic” in their arguments, noting that under the plaintiffs’ standards, even an apple picked directly from a tree would not be “natural” had pesticides been applied during its growth. The court first chastised the plaintiffs for erroneous references and poorly timed supplemental filings. “Despite 18 months passing between the filing of this lawsuit and the filing of the Certification Motion, Plaintiffs effectively left the Court to drink from a fire hose, perhaps filled with…
A California federal court has denied the U.S. Department of Agriculture’s (USDA’s) motion to dismiss a lawsuit brought by environmental organizations challenging USDA’s issuance of a guidance document about the use of pesticides in compost without first having solicited public comment. Ctr. for Envt’l Health v. Vilsack, No. 15-1690 (N.D. Cal., order entered September 29). The Center for Food Safety (CFS), Center for Environmental Health and Beyond Pesticides challenged USDA’s actions on Administrative Procedures Act (APA) grounds, arguing the agency violated federal procedures by not allowing a formal rulemaking and public comment period about a guidance document permitting the use of compost with pesticides in the production of organic food. The court found that the organizations had sufficiently stated their claim under the APA and had standing to sue. “The agency’s unilateral action to allow compost contaminated with pesticides in organic production was contrary to federal rulemaking requirements as well…
One week after the sentencing of three Peanut Corp. of America (PCA) executives, two managers have been sentenced to prison for their roles in a Salmonella outbreak linked to nine deaths and hundreds of illnesses. Samuel Lightsey and Daniel Kilgore, former operations managers at PCA’s Blakely, Georgia, plant, were sentenced to three years and six years respectively. “By making sure that the individuals involved in the corporate fraud at PCA were held accountable, I am confident that the message to other executives is clear,” said U.S. Attorney Michael Moore. “Because we all know that it is people who make decisions about what goes on behind the corporate curtain, we’ll be looking to hold those individuals personally accountable when they steer their businesses down the path of fraud. Mr. Kilgore and Mr. Lightsey acknowledged their wrongdoing, and today their sentences reflect not only their acceptance of that responsibility, but also the…
Russia has imposed a moratorium on the use of genetically modified organisms in domestic food production. Deputy Prime Minister Arkady Dvorkovich reportedly made the announcement during a biotechnology conference in Kirov on September 18, 2015. Russia’s action follows similar moves by France, Germany and Scotland. See Reuters, September 18, 2015. Issue 580
The Committees of Advertising Practice (CAP), a group that works in conjunction with the U.K. Advertising Standards Authority, has announced a pre-consultation with various stakeholders in advance of new rules targeting non-broadcast advertising of food and soft drinks high in fat, salt or sugar to children. Non-broadcast channels of advertising include online, outdoor, print media, cinema, and direct marketing. “Our decision to carry out a public consultation responds, in part, to changes in children’s media habits and evolving advertising techniques,” according to CAP. “It also reflects a growing consensus, shared by public health and industry bodies, about the role of advertising self-regulation in helping to bring about a change in the nature and balance of food advertising targeted to children.” CAP reportedly plans to launch the public consultation in early 2016. See CAP News Release, September 29, 2015. Issue 580
The U.S. Department of Agriculture’s (USDA’s) Animal and Plant Health Inspection Service (APHIS) has linked a 2013-2014 outbreak of porcine epidemic diarrhea virus (PEDv) that killed more than 7 million piglets to Flexible Intermediate Bulk Containers (FIBCs), the reusable tote bags used to transport and store pig feed. According to an APHIS report, which seeks to explain why PEDv occurred in the United States but not Canada or the European Union, the bags were most likely contaminated in their origin country before distribution to feed mill customers across the Midwest, where they contaminated “feed or ingredients destined for delivery to the farm.” “Several of the farm investigations as well as an early case-control study suggested feed or feed delivery as the source of the outbreak; however, there were no common feed manufacturers, products, or ingredients in the initially infected herds,” states the report, which notes that the PEDv strain found…
The U.S. Food and Drug Administration (FDA) has issued a final rule allowing “the safe use of mica-based pearlescent pigments prepared from titanium dioxide and mica as color additives in certain distilled spirits.” Mica-based pearlescent pigments are currently approved as color additives in many foods and beverages, including distilled spirits containing “not less than 18 percent and not more than 23 percent alcohol by volume.” Effective November 5, 2015, the new rule permits the use of these pigments at a level of up to 0.07 percent by weight in distilled spirits containing not less than 18 percent and not more than 25 percent alcohol by volume, while finding that “certification of mica-based pearlescent pigments prepared from titanium dioxide is not necessary for the protection on the public health.” “Regarding cumulative exposure from the current and petitioned uses of mica-based pearlescent pigments, we note that in our recent final rule that…
