Researchers with the University of Illinois, Chicago, Institute for Health Research and Policy have published a study allegedly concluding that, contrary to industry claims, sugar-sweetened beverage (SSB) taxes “do not have a negative impact on state-level employment.” Lisa Powell, et al., “Employment Impact of Sugar-Sweetened Beverage Taxes,” American Journal of Public Health, February 2014. Using a macroeconomic simulation model to assess the employment impact of a 20-percent state-level SSB tax in California and Illinois, the study’s authors also factored “changes in SSB demand, substitution to non-SSBs, income effects, and government expenditures of tax revenues” into their final calculations. Based on this analysis, the study estimates that SSB sales would decline by $678.8 million in Illinois and $1.2 billion in California as the result of a 20-percent tax. At the same time, however, SSB taxes would increase government revenue by $554.3 million in Illinois and $940.4 million in California while sales revenue…
Category Archives Issue 514
“Soda and other sugary drinks are popping up on city and state dockets across the nation, as lawmakers attempt to curb America’s consumption of certain beverages,” writes Time reporter Katy Steinmetz in this February 20, 2014, article summarizing recent campaigns to limit sales of sugar-sweetened beverages (SSBs) and energy drinks while raising revenue for government-backed health initiatives. In addition to San Francisco’s efforts to impose a SSB tax, Steinmetz notes similar proposals under consideration in Illinois and Berkeley, California, as well as attempts by Maryland and Los Angeles legislators to impose age restrictions on energy drink purchases. According to the article, San Francisco’s latest measure has garnered broad support from the city’s board of supervisors, “effectively guaranteeing that it will be on the ballot,” where it will need to gain approval from two-thirds of voters. But opponents of SSB taxation and the age restrictions on energy drinks have claimed that…
Public health watchdog the Center for Science in the Public Interest (CSPI) has announced a February 26, 2014, meeting at the National Press Club in Washington, D.C., to discuss ways of improving the next generation of nutrition facts labels. NPR News correspondent Allison Aubrey is slated to moderate the panel with participants CSPI Executive Director Michael Jacobson; Wegmans Food Market Corporate Nutrition Manager Jane Andrews; The NPD Group’s Food & Beverage Industry Analyst Darren Seifer; Greenfield-Belser Principal Burkey Belser; and Share our Strength Director of National Partnerships Chef Gregory Silverman. See CSPI News Release, February 18, 2014. Issue 514
Drawing on lessons from tobacco regulation, Temple University Associate Professor Jennifer Pomeranz has authored an article recommending that state and local governments which opt to impose taxes on sugary beverages consider also adopting measures such as minimum price laws and prohibitions on price discounting and coupons to effectively deter consumption. Titled “Sugary Tax Policy: Lessons Learned from Tobacco,” the article claims that sugary beverage manufacturers can distribute the cost of a tax throughout their product lines, including diet beverages, bottled water and juice, thus making the imposition of minimum prices along with sufficiently high taxes a way to deter manufacturers from circumventing the price increase associated with a sugary beverage tax. Formerly with the Yale Rudd Center for Food Policy and Obesity, Pomeranz also calls for additional research on whether it would be feasible to condition retail licensing on compliance with measures adopted to reduce sugary beverage consumption. See American Journal…
Associate Law Professor Diana Winters argues in “The Magical Thinking of Food Labeling: The NLEA as a Failed Statute” that those parts of the Nutrition Labeling and Education Act of 1990 (NLEA) regulating “health claims” and “nutrient content claims” have been ineffective at addressing obesity and should be repealed. While Winters acknowledges that leaving this aspect of food labeling to the states will result in an increase in litigation, because the current litigation environment is dominated by time-consuming, complex arguments over non-substantive issues, such as preemption and the primary jurisdiction doctrine, the best way to improve front-of-package labeling is to allow state courts to focus on the substance of deceptive claims. Among other matters, the author notes that attitudes about food consumption “vary wildly from state to state,” thus justifying differing state and local laws in the field of food labeling. She also observes, “By crafting laws tailored to targeted…
A federal court in California has preliminarily approved the settlement of class claims that Quaker Oats violated consumer protection laws by labeling its snack bars and instant cereal products as “wholesome” with “0g Trans Fat” when they actually contain “unhealthy” ingredients, such as partially hydrogenated vegetable oils (PHOs). In re Quaker Oats Labeling Litig., No. 10-0502 (N.D. Cal., San Francisco Div., order entered February 12, 2014). Under the proposed settlement, Quaker Oats, which admits no wrongdoing, has agreed to remove PHOs from products that contain them by December 31, 2015, and will not reintroduce PHOs into these products for 10 years. The company has also agreed to not introduce PHOs into products such as Quaker Chewy bars or Instant Quaker Oatmeal products that do not contain them for 10 years, and, by December 31, 2014, will cease stating on product labels “contains a dietarily insignificant amount of trans fat” for…
A federal court in California has denied the plaintiff’s request to certify a class of those who purchased ZonePerfect Nutrition bars relying on allegedly deceptive labels representing the products as “All Natural.” Sethavanish v. ZonePerfect Nutrition Co., No. 12-2907 (N.D. Cal., order entered February 13, 2014). The court found that the plaintiff set forth sufficient evidence to establish that she had standing for the purpose of class certification, despite paying more for other nutrition bars and sometimes purchasing non-natural products. Because the defendant “overwhelmingly sells to retailers, not directly to consumers, and . . . there are no records identifying any but a small fraction of consumers who have purchased ZonePerfect bars in the last several years,” the court, however, agreed with the defendant that neither the class nor the quantity of nutrition bars each member purchased were ascertainable other than by affidavit. As to ascertainability, the court noted a…
A National Labor Relations Board (NLRB) judge has determined that Sprouts Farmers Market violated federal labor law by requiring employees to sign mutual binding arbitration agreements (MAAs) that preclude class or collective-action claims in arbitration or otherwise as a condition of hiring and continued employment. SF Mkts, LLC d/b/a Sprouts Farmers Mkt., Nos. 21-CA- 099065, -104677 (NLRB Div. of Judges, Atlanta Branch Ofc., decided February 18, 2014). The issue arose from two cases: in the first, Jana Mestanek filed wage-andhour claims against the employer in court, and it sought to compel arbitration under the MAA to which she had agreed; in the second, Laura Christensen was fired for refusing to sign an acknowledgement of an employee handbook supplement agreeing to the terms of a revised MAA. At issue was whether D.R. Horton, Inc. (Horton), 357 NLRB No. 184 (2012), enfd. in part, denied in part, 737 F.3d 344 (5th Cir.…
The U.S. Food and Drug Administration (FDA) has entered a consent decree with the Center for Food Safety, which sued the agency over its alleged failure to comply with implementation rulemaking deadlines in the Food Safety Modernization Act (FSMA). Ctr. for Food Safety v. Hamburg, No. 12-4529 (N.D. Cal., decree filed February 20, 2014). Under the agreement, FDA will withdraw its Ninth Circuit appeal and will comply with the following timeline for the adoption of final rules: (i) Preventive Controls for Human Food and Preventive Controls for Animal Food—August 30, 2015; (ii) Foreign Supplier Verification Program, Produce Safety Standards, and Accreditation of Third Party Auditors—October 31, 2015; (iii) Sanitary Transport of Food and Feed—March 31, 2016; and (iv) Intentional Contamination— May 31, 2016. The deadlines may be extended by written agreement of the parties and court approval if “FDA believes good cause exists to seek an extension.” If agreement is…
A federal court in California has dismissed with prejudice the third amended complaint filed by named plaintiffs on behalf of a putative class of purchasers of Chobani Greek Yogurt products, alleging violations of state consumer protection laws because the products were mislabeled under federal law by listing evaporated cane juice (ECJ), instead of sugar, as an ingredient and stating that the yogurts contain only natural ingredients, when they actually contain fruit and vegetable juice—purportedly “highly processed unnatural substances”—as well as turmeric for color. Kane v. Chobani, Inc., No. 12-2425 (N.D. Cal., decided February 20, 2014). The court agreed with Chobani that the plaintiffs failed to sufficiently allege reliance or to plead fraud with sufficient particularity and thus lacked standing to pursue their claims under California’s Unfair Competition Law (UCL), False Advertising Law and Consumers Legal Remedies Act. Apparently annoyed that the plaintiffs had been given numerous opportunities to cure pleading…
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