The U.S. Department of the Treasury’s Alcohol and Tobacco Tax and Trade Bureau (TTB) has issued a May 28, 2013, ruling that will allow alcoholic beverage manufacturers “to provide consumers with nutritional information about their products.” Acting under the authority of the Federal Alcohol Administration Act, TTB will permit the use of “Serving Facts” statements on wine, distilled spirits and malt beverages that describe the product’s “serving size, the number of servings per container, the number of calories, and the number of grams of carbohydrates, protein, and fat per serving.” Manufacturers may also choose to include information “about the alcohol content of the product as a percentage of alcohol by volume and may also include a statement of the fluid ounces of pure ethyl alcohol per serving.” According to the new ruling, TTB issued the voluntary guidance pending plans to require similar Serving Facts statements on all alcoholic beverage labels.…
Category Archives Issue 485
A recent study has allegedly linked di-2-ethyhexylphthalate (DEHP) exposure to elevated blood pressure (BP) in children, raising concerns about the effect of phthalates and other plastic additives on long-term heart health. Leonardo Trasande, et al., “Urinary Phthalates Are Associated with Higher Blood Pressure in Childhood,” The Journal of Pediatrics, May 2013. Researchers with the New York University (NYU) Langone Medical Center, University of Washington, University of Cincinnati, and Penn State University apparently used urinary metabolite data from 3,000 children enrolled in the National Health and Nutrition Examination Survey 2003-2008 to quantify exposure to three phthalate families, including DEHP. Although the results evidently found no association between the phthalates used in cosmetics and personal care products and increased BP, dietary exposure to DEHP was reportedly associated “with higher systolic BP in children and adolescents.” “Phthalates can inhibit the function of cardiac cells and cause oxidative stress that compromises the health of…
A new mobile application that allows consumers to learn more about the company and manufacturing process behind a specific product has attracted nationwide media attention, with ABC News “Technology Review” recently naming it “App of the Week.” Created by Los Angeles based developer Ivan Pardo, the “Buycott” app encourages consumers to scan product barcodes to determine whether the purchase conflicts with any causes identified by the user, who can decide to join preexisting Buycott campaigns or create new ones based on individual concerns. For example, as a May 14 Forbes article explains, the “Demand GMO Labeling” campaign will tell consumers if a box of cereal “was made by one of the 36 corporations that donated more than $150,000 to oppose the mandatory labeling of genetically modified food.” In addition to helping consumers source products, Buycott reportedly supplies company information ranging from “phone numbers, emails, social media accounts, and headquarters location……
The seventh biennial Childhood Obesity Conference is slated for June 18-20, 2013, in Long Beach, California. Described as “the nation’s largest, most influential collaboration of professionals dedicated to combating pediatric obesity,” the event expects to draw nearly 2,000 attendees from across the nation. Agenda highlights include presentations by New York Times investigative journalist Michael Moss, New York University Professor Marion Nestle, food activist and attorney Michele Simon, and Center for Science in the Public Interest Director of Nutrition Policy Margo Wootan.
The Department of Justice (DOJ) has published the antitrust complaint filed with a proposed final judgment and competitive impact statement, resolving its concerns that the acquisition of Grupo Modelo S.A.B. de C.V. by Anheuser-Busch InBev SA/NV would violate section 7 of the Clayton Act. According to DOJ, the final judgment requires the companies “to divest Modelo’s entire U.S. business to Constellation Brands, Inc.,” or to an alternative purchaser if that transaction fails, to avoid a threat to the competitive U.S. beer market. Court approval of the agreement is required, and public comment is requested within 60 days of publication. See Federal Register, May 22, 2013.
Class representatives in litigation against Papa John’s International have filed an unopposed motion for preliminary approval of a class action settlement in a case involving claims that the company’s franchisees sent unlawful commercial text messages through OnTime4U to some 220,000 individuals without their express consent. Agne v. Papa John’s Int’l, Inc., No. 10-1139 (W.D. Wash., filed May 17, 2013). Details about the court’s grant of class certification appear in Issue 463 of this Update. Under the proposed agreement, class members who are provided notice will automatically receive a merchandise certificate for a free Papa John’s pizza—a $13 retail value with a collective value of $2.86 million. Class members who submit claims and whose phone numbers are verified will also receive $50 each at an aggregate value of $11 million. Attorney’s fees and costs will add $2.45 million to the settlement fund, and $25,000 in incentives for the named plaintiffs will…
A YUM! Brands shareholder has brought a derivative action on behalf of the company against its officers and directors in a federal court in Kentucky, alleging they inflated the company’s growth predictions and failed to promptly inform shareholders that the company purchased chicken with allegedly excessive levels of antibiotics and toxic chemicals for sale in KFC establishments in China; according to the complaint, once the information became public, business in China and the company’s share price plummeted, while the defendants “profited handsomely” from “dumping more than $64.6 million of personally held common stock during the Relevant Period.” Zona v. Novak, No. 13 506 (W.D. Ky., filed May 21, 2013). Alleging breach of fiduciary duty, insider selling and misappropriation of information, and unjust enrichment, the plaintiff seeks damages, injunctive relief, disgorgement, attorney’s fees, costs, and expenses. She claims that management knew as early as 2009 that the chicken purchased in China was tainted…
A federal court in Georgia has overruled the government’s objections to Stewart Parnell’s representation by attorney Kenneth Hodges in the defense of criminal charges arising from a Salmonella outbreak allegedly traced to Parnell’s former company, Peanut Corp. of America. United States v. Parnell, 13-12 (M.D. Ga., order entered May 30, 2013). Because the government’s motion was sealed, further details about the objections are unknown. According to the court, Parnell “knowingly and voluntarily waived his right to object to Hodges’ potential or actual conflict.” Additional information about the criminal charges appears in Issue 472 of this Update.
A federal court in California has granted in part and denied in part the motion to dismiss filed by Twinings North America, Inc. to the second amended putative class complaint filed by a woman who alleged that she paid a premium for the company’s green, black, white, and red teas relying on their purportedly misleading label—“a natural source of antioxidants.” Lanovaz v. Twinings N. Am., Inc., No. 12-2646 (N.D. Cal., order entered May 23, 2013). The company sought to dismiss claims relating to products the plaintiff did not purchase, labeling the plaintiff did not see or advertising upon which the plaintiff did not rely. According to the court, as long as the “not purchased products” are nearly identical, a plaintiff may bring claims on behalf of others related to those products. Here, “Because the claims for 51 of the varieties of tea are based upon the exact same label describing…
A federal court in Florida has determined that a putative statewide class is not preempted under federal law from claiming that the presence of genetically modified (GM) corn in Campbell Soup Co. vegetable soups renders its “100% Natural” labeling representations false. Krzykwa v. Campbell Soup Co., No. 12-62058 (S.D. Fla., order entered May 24, 2013). The court also refused to dismiss the claims under the primary jurisdiction doctrine. In the original complaint, the plaintiff alleged that he purchased two soup products with GM corn. Their labels had been pre-approved by the U.S. Department of Agriculture (USDA) because they also contained chicken and the agency has pre-approval authority as to these products. Campbell argued that USDA’s seal of approval preempted state law-based labeling-related claims. Later complaint amendments changed the products at issue to vegetarian soups whose labels are under the Food and Drug Administration’s (FDA’s) regulatory purview and do not require pre-approval.…
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