Category Archives Issue 313

Shook, Hardy & Bacon Corporate Law Partner Nate Muyskens will join a panel of distinguished speakers in Washington, D.C. at a Legal iQ Foreign Corrupt Practices Act (FCPA) conference, September 21-23, 2009. Co-sponsored by Shook, the conference brings together counsel from global corporations and federal enforcement agencies to address FCPA issues with a specific focus on “Defining New Strategies in Global Anti-Corruption for 2009 and Beyond.” Muyskens will share a podium with representatives of Siemens Corp., Coca-Cola Ltd. and Morgan Stanley to discuss “Conducting Due Diligence of Foreign Third Parties to Minimize Liability Risks.” Conference organizer Legal iQ is a division of the International Quality & Productivity Center.

This article explores how the method of estimating the calories in food, developed in the late 19th century, may provide misleading information on the amount of energy people actually get from a food. The calorie counts are calculated by burning small samples of food, and science writer Bijal Trivedi observes, “Nutritionists are well aware that our bodies don’t incinerate food, they digest it. And digestion— from chewing food to moving it through the gut and chemically breaking it down along the way—takes a different amount of energy for different foods.” Trivedi compares the nutrients in a health-food bar and a chocolate brownie and discusses research showing that more highly refined, cooked and softer ingredients tend to be absorbed more readily when eaten, thus contributing higher actual caloric intake than raw or chewy foods. Despite the acknowledged inaccuracies in calorie counts, most nutritionists have apparently decided that the measuring system should not…

Cornell Law School Professor Sherry Colb discusses the recent incident involving the removal of a morbidly obese teen from the custody of his mother for child neglect. Colb questions the wisdom of South Carolina’s decision to place the child in the state’s protective custody, suggesting, “the government could spend considerably less money providing [the mother] with healthy food and information about nutrition.” Noting that the mother works long hours at more than one job and relies on fast food to feed her child, Colb points out that she only lacks resources, “not love or concern for her son.” She considers whether the government could take custody of a child with anorexia nervosa and thus, “needlessly add psychological trauma to an already fragile child’s life.” She also considers the typical diet offered in the nation’s school lunch programs, involving high-fat and processed carbohydrates. Colb concludes, “We should not be arresting people…

According to a news source, the Canadian Journal of Public Health has published research showing that folic-acid fortified foods often contain, on average, 50 percent more of the vitamin than listed on product labels. Some foods apparently contain 377 percent of the folic acid declared. The federal government reportedly adopted a folic-acid fortification program in the late 1990s affecting products ranging from breads, cookies, crackers, and pastas to desserts and ready-to-eat cereals. The incidence of certain birth defects in Canada has dropped by more than half since then, and the program is also credited with reducing heart defects and neuroblastoma, a type of childhood cancer. Some in Canada have reportedly called for adding folic acid to other foods, but caution has been urged in light of the new research because too much folic acid can mask vitamin B12 deficiency, a problem for seniors with anemia. Excess levels can also apparently interfere…

The Urban Institute and the University of Virginia have issued a report claiming that lawmakers should study anti-tobacco campaigns as they consider taxing fattening foods and sugary drinks to curb the nation’s obesity problem. Titled “Reducing Obesity: Policy Strategies from the Tobacco Wars,” the report asserts that increased education about smoking and taxing tobacco products brought the percentage of U.S. smokers down from 42.4 percent of the population in 1965 to less than 20 percent in 2007. Matthew Myers, president of the Campaign for Tobacco-Free Kids, was quoted as saying that raising taxes “brings about the quickest, most measurable, and most pronounced decline in use.” Policies suggested in the report include (i) the adoption of excise or sales taxes on “fattening food,” such as ice cream, sugary drinks and candy; (ii) the placement of “clear and simple labels,” such as traffic-light signpost labels, “conveying the health risks of fattening foods”…

An industry trade group has sued Cal/EPA’s Office of Environmental Health Hazard Assessment (OEHHA) to stop it from listing styrene as a carcinogen under the Safe Drinking Water and Toxic Enforcement Act of 1986 (Prop. 65). Styrene Info. & Research Ctr. v. OEHHA, No. 09-53089 (Cal. Super. Ct., Sacramento Cty., filed 07/15/09). According to the complaint, styrene does not cause human cancer, and its proposed Prop. 65 listing would cause the $28-billion-a-year industry “irreparable harm” by stigmatizing the chemical. It also alleges that OEHHA failed to comply with administrative procedures in interpreting and implementing Prop. 65, created secret interpretative standards and refused to consider new scientific evidence indicating that styrene is not “known to cause cancer.” Styrene is used in milk and egg cartons, berry baskets, produce shipping crates, foodservice containers, plastic pipes, automobile parts, medical equipment, countertops, and many other products. To support its proposed styrene listing, OEHHA cited a 2002 International…

The Center for Biological Diversity has sent a 60-day notice of intent to sue letter to the Environmental Protection Agency (EPA) claiming that the agency has failed to take required action under the Endangered Species Act (ESA) to further the polar bear’s conservation when making decisions about the use of pesticides and herbicides under the Federal Insecticide, Fungicide & Rodenticide Act (FIFRA). According to the July 8, 2009, letter, the polar bear was designated an endangered species in May 2008, and the ESA requires the EPA to consider protected species when registering pesticides under FIFRA. The center contends that many of the pesticides registered in the United States “are known likely to affect the polar bear” and that EPA has failed to comply with its consultation and review obligations as to more than 35 organophosphates, many of which have apparently been detected in the Arctic. Listed are chlorpyrifos, diazinon, disulfoton,…

The Fifth Circuit Court of Appeals has decided to rehear a case involving the interpretation of the Packers and Stockyards Act as applied to contracts between chicken growers and a processor. Wheeler v. Pilgrim’s Pride Corp., No. 07-40651 (5th Cir., decided July 27, 2009). In 2008, a three-judge circuit panel decided that the law does not require proof of an adverse effect on competition, creating a split with other circuit courts that had considered the question. The issue arose when chicken growers complained that the processor for whom they raised chickens gave preferential treatment and thus greater compensation to one grower. According to the earlier opinion, the other circuit courts have mistakenly looked to legislative history and policy issues to interpret the law, which the Fifth Circuit panel believed was clear and unambiguous. The case will be considered by the entire Fifth Circuit court on rehearing.

A federal court in California has denied the motion to dismiss filed by Ocean Spray Cranberries, Inc. in litigation filed by Pom Wonderful LLC alleging that the company’s false advertising for a cranberry-pomegranate juice violates federal and state law and constitutes unfair competition. Pom Wonderful LLC v. Ocean Spray Cranberries, Inc., No. 09-00565 (C.D. Cal., decided July 16, 2009). Pom Wonderful alleges that Ocean Spray’s product contains little pomegranate juice, costs less to produce and thus unfairly competes with its own and other competitors’ pomegranate juices. The complaint also contends that marketing the Ocean Spray product as high in antioxidants misrepresents the product because “in fact the Beverage does not contain high levels of antioxidants.” The court rejected Ocean Spray’s assertions that (i) the false advertising claims brought under the Lanham Act are precluded or barred by the Federal Food, Drug, and Cosmetic Act and Food and Drug Administration (FDA) regulations;…

A federal court in California has denied the request for class certification filed by plaintiffs who allege that Van’s International Foods falsely advertised its frozen waffle products by listing incorrect nutritional information in their labels. Hodes v. Van’s Int’l Foods, No. 09-1530 (C.D. Cal, decided July 23, 2009). While the court found that the claims met the numerosity, commonality, typicality, and adequacy of representation requirements of Rule 23(a) of the Federal Rules of Civil Procedure, it found that the named plaintiffs failed to satisfy Rule 23(b)(3). According to the court, common questions of law and fact do not predominate over individualized issues, and the class action device is not superior to other methods for adjudicating the controversy. The named plaintiffs had sought to certify a nationwide class of consumers, and the court was concerned about the manageability of the class action, stating, “the Court has concerns about how Plaintiffs will identify each…

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