Category Archives Issue 530

Former U.S. Food and Drug Administration Commissioner David Kessler has authored a perspective article in the July 17, 2014, issue of The New England Journal of Medicine, arguing that the agency’s proposed revisions to the Nutrition Facts panel “don’t go far enough.” While praising the first amendments to the panel since its launch in 1997, the article claims that the proposed changes not only stop short of specifying a Daily Value for added sugar but fail to consider a product’s overall nutritional value. Additional details about FDA’s proposed labeling revisions appear in Issue 515 of this Update. “There is nothing in the new framework that actively encourages consumers to purchase food rich in the fruits, vegetables, and whole grains that are rightfully considered ‘real food,’” explains Kessler. “Instead, the focus is on specific nutrients—an emphasis that gives food companies an incentive to fortify their products so they can make claims such…

The Food Marketing Workgroup (FMW) has sent a July 16, 2014, letter to Kraft Foods Group, Inc., questioning how the company purportedly markets its Lunchables product line to children. Signed by Rudd Center for Food Policy and Obesity Director of Marketing Initiatives Jennifer Harris and Center for Science in the Public Interest Director of Nutrition Policy Margo Wootan, the letter cites a recent Rudd Center report alleging that just five out of 42 Lunchables meet nutrition standards under the Children’s Food and Beverage Advertising Initiative (CFBAI). In particular, FMW claims that even though Kraft restricts its child-directed advertising to only those products that comply with CFBAI, the use of sweepstakes offers, in-store displays and other tactics could still contravene industry guidelines. “In the supermarket, less nutritious versions of Lunchables outnumber the healthier ones by six to one, and the healthier varieties are most likely to be stocked on the top…

Advocate General Niilo Jääskinen of the EU Court of Justice has issued an opinion in the case of a morbidly obese child-minder in Denmark who lost his job, allegedly due to unlawful discrimination, finding that “if obesity has reached such a degree that it plainly hinders participation in professional life, then this can be a disability” under the Equal Treatment in Employment Directive. Karsten Kaltoft, who never weighed less than 352 pounds (with a BMI of 54) during his 15-year tenure with the Municipality of Billund taking care of other people’s children in his home until he was terminated, claimed that his dismissal was based on his weight and sought damages for discrimination. The Court of Kolding in Denmark referred the case to the EU Court of Justice, seeking an opinion on whether the EU Treaty and Charter included a “self-standing prohibition on discrimination on the grounds of obesity,” or…

A federal court in Georgia has delayed until July 28, 2014, the criminal proceedings against Stewart Parnell, former owner of the Peanut Corp. of America, which was implicated in a 2008-2009 nationwide Salmonella outbreak that sickened hundreds and led to at least nine deaths. United States v. Parnell, No. 13-cr-12 (M.D. Ga., order entered July 11, 2014). The defendants, including former vice president of sales Michael Parnell and former quality assurance manager Mary Wilkerson, had argued that they did not have time to review some 100,000 documents produced by the prosecution just days before the original July 14 trial date. The court refused to dismiss the 76-count felony indictment as an alternative remedy. Meanwhile, the court is also considering whether a Centers for Disease Control and Prevention (CDC) official should be allowed to testify during the trial, indicating that it would conduct a Daubert hearing to determine whether the testimony of CDC…

A California federal court has approved a settlement in a class action alleging that Trader Joe’s labels items with synthetic ingredients as “All Natural.” Larsen v. Trader Joe’s Co., No. 11-5188 (N.D. Cal., order entered July 11, 2014). Trader Joe’s will pay $3.375 million to a settlement fund to compensate class members with a proof of purchase for all products and members without a proof of purchase for up to 10 items, with leftover funds to be distributed as products to class members at retail locations throughout the United States. Plaintiffs’ counsel will receive $950,000 of the fund. In 2011, plaintiffs accused Trader Joe’s of labeling several of its food products as “All Natural” or “100% Natural” despite containing one or more synthetic ingredients, which they alleged constituted fraud and unlawful business practices under federal and California law. The parties attended three mediation sessions supervised by a retired judge, but they…

While the Dairy Farmers of America (DFA) and affiliated Dairy Marketing Services have agreed to pay $50 million to settle class claims that they conspired to monopolize the market for raw milk in the Northeast, a federal court in Vermont has denied preliminary approval of the proposed settlement without prejudice. Allen v. DFA, Inc., No. 09-0230 (U.S. Dist. Ct., D. Vt., order entered July 9, 2014). Details about the litigation appear in Issue 323 of this Update. The court pointed to a number of flaws in the draft class notice, including that it released the defendants and a number of related entities and extended beyond the legal claims in the lawsuit without making this clear to class members. The basis for its ruling, however, was that some class members apparently plan to object to the settlement, but no information about their objections was provided in the expedited motion for preliminary approval…

Tufts University Senior Research Scientist Guangwen Tang has reportedly accused the American Society for Nutrition (ASN) of defaming her with its plan to retract her 2012 article—“β-carotene in Golden Rice is as good as p-carotene in oil at providing vitamin A to children”—for allegedly prob- lematic research protocols. Filing in Middlesex County Court, Tang has also accused Tufts of interference in business relations because, she argues, the university barred her from doing human research for two years and told her she would be subject to disciplinary actions regarding future research and would be required to undergo human subject training—actions that Tufts disclosed to ASN and led to the organization’s decision to retract her article, she claims. Tang’s studies examined the effects of golden rice, genetically engineered rice enriched with β-carotene, in China through a 2008 field trial that involved feeding the rice to Chinese children. Chinese media reports and Greenpeace…

John Wayne Enterprises (JWE) has filed a complaint in California federal court seeking declaratory judgments determining that its usage of the “Duke” trademark is not likely to cause confusion with the trademarks owned by Duke University, which has challenged several JWE trademark applications over the last decade. John Wayne Enterprises, LLC v. Duke Univ., No. 14-1020 (C.D. Cal., filed July 3, 2014). JWE intends to sell bourbon under the name Duke, a nickname John Wayne used since his childhood and which fans still use to affectionately refer to him. Duke University has repeatedly challenged JWE’s past trademark applications by filing notices of opposition and a petition for cancellation of JWE’s owned “Duke” trademarks, alleging that the marks suggest a false connection to the university, would likely confuse consumers and dilute the university’s trademarks. JWE seeks two declaratory judgments to determine that its “Duke” mark does not create any likelihood of…

The state attorneys general (AGs) of Oregon, Vermont and Washington have reportedly filed separate lawsuits against Living Essentials and its parent Innovation Ventures seeking a permanent injunction to stop allegedly misleading and deceptive advertising for 5-hour ENERGY®. According to news sources, other state AGs are expected to bring similar action; some 30 have been investigating the accuracy of company ads for the product. Washington AG Bob Ferguson has alleged that the defendants violated the state consumer protection statute by (i) airing TV commercials with “survey results” from doctors who “recommend” the product “while misrepresenting survey results and failing to disclose key facts”; (ii) using a misleading “no sugar crash” product tagline given studies demonstrating a caffeine crash; (iii) implying that the product can be consumed by teens with the label statement, “Do not take if you are pregnant or nursing, or under 12 years of age”; and (iv) claiming that the…

A federal court in Illinois has dismissed without prejudice a putative class action alleging consumer fraud against a company that makes snacks which list evaporated cane juice (ECJ) as an ingredient. Ibarrola v. Kind, LLC, No. 13-50377 (N.D. Ill., order entered July 14, 2014). The court declined to address whether the plaintiff had standing to assert claims as to products she had not purchased because class issues such as adequacy and typicality had not yet been briefed and further declined to consider dismissing the complaint under the primary jurisdiction doctrine, noting that the U.S. Supreme Court may have called this rationale into question in POM Wonderful LLC v. Coca-Cola Co., No. 12-761, 2014 WL 2608859 (June 12, 2014). The court dismissed the entire complaint, however, because it failed “to plausibly and adequately alleged that [the plaintiff] was deceived by Kind’s representations.” She did not apparently “explain how she was deceived, or…

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