The parties to litigation alleging that Ghirardelli Chocolate Co. white chocolate products do not contain the requisite white chocolate ingredients to be labeled and promoted as such have agreed to settle the putative nationwide class action for $5.25 million and labeling changes. Miller v. Ghirardelli Chocolate Co., No. 12-4936 (N.D. Cal., motion filed August 20, 2014). Additional information about the case appears in Issues 465 and 479 of this Update. The settlement would also resolve claims to be alleged in a second lawsuit by an intervening named plaintiff regarding the use of “all natural” on product labels. Under the agreement, class members who purchased the company’s Classic White Chips would be able to receive $1.50 per purchase, while those purchasing 72 other “all natural” products would receive $0.75 per purchase. The claims of those with proofs of purchase would not be capped, while claimants without proof of purchase would receive a maximum…
Category Archives Issue 535
Prichard’s Distillery Inc., maker of Benjamin Prichard’s Double Barreled Bourbon, has filed a lawsuit against Sazerac Co. alleging that the liquor manufacturer has violated its trademark in “double barreled” by selling A. Smith Bowman Limited Edition Double Barrel Bourbon Whiskey and Buffalo Trace Experimental Collection Double Barreled, a bourbon. Prichard’s Distillery Inc. v. Sazerac Co., No. 14-1646 (U.S. Dist. Ct., M.D. Tenn., filed August 11, 2014). Prichard’s claims that it has owned a trademark on the use of “double barreled” in liquor sales since 2002, and the term comes from Prichard’s distilling process, which involves aging the bourbon in one barrel, diluting it to a lower proof, then aging it in a second barrel to reinforce the flavor. The company seeks an injunction preventing Sazerac from using “double barreled” on its products as well as damages multiplied due to Sazerac’s “willful and wrongful conduct.” Issue 535
The Equal Employment Opportunity Commission (EEOC) has filed a lawsuit in North Carolina federal court against Food Lion alleging that the grocery retailer fired an employee because he was unavailable to work on Thursday evenings and Sundays, when he attended Jehovah’s Witness services as a minister and elder. EEOC v. Food Lion LLC, No. 14-708 (U.S. Dist. Ct., M.D.N.C., filed August 20, 2014). According to the complaint, a Food Lion manager hired the employee with knowledge and acceptance of his scheduling restrictions, but after the employee was assigned to a different store location, a second manager insisted on scheduling him on days that he attended religious services. When the employee chose to attend services over working his scheduled shift, he was fired. EEOC alleged that Food Lion’s employment practices violate Title VII of the Civil Rights Act of 1964 and Title I of the Civil Rights Act of 1991, and…
Federal charges have been brought against two owners and two employees of Rancho Feeding Operations, a Petaluma, California-based livestock slaughterhouse, for distributing condemned and diseased cattle in violation of the Federal Meat Inspection Act. United States v. Amaral, No. 14-cr-437 (N.D. Cal., filed August 14, 2014); United States v. Singleton, No. 14-cr-441 (N.D. Cal., filed August 18, 2014). As a result of the investigation giving rise to the charges, Rancho voluntarily recalled some 8.7 million pounds of beef products in February 2014. According to the criminal indictment and information, Jesse Amaral and Robert Singleton, who owned the operation, allegedly directed Eugene Corda, Rancho’s primary yardperson, and Felix Cabrera, the facility’s foreperson, to either (i) remove “USDA Condemned” stamps from cattle carcasses and to process them for transport and distribution, or (ii) place the heads of healthy cows, swapped for diseased heads—from “cancer eye cows”—next to the carcasses of diseased animals while…
A jury in an Iowa federal court has reportedly determined that International Flavors and Fragrances Inc. (IFF) was not liable for the lung condition a man allegedly developed from microwaving popcorn containing diacetyl, a butter flavoring ingredient used in the product. Stults v. Int’l Flavors & Fragrances Inc., No. 11-4077 (U.S. Dist. Ct., N.D. Iowa, verdict entered August 19, 2014). The plaintiff claimed that the company had breached the implied warranty of fitness for its butter flavoring, which had a foreseeable use in microwave popcorn packages. IFF was the only remaining defendant during the seven-day trial out of some half-dozen companies originally sued for $27 million in compensatory damages. See Law360, August 20, 2014. Issue 535
A federal court in New Jersey has denied the motion to dismiss filed by MonaVie, Inc. in consumer-fraud litigation involving its juice products, finding that the first amended putative class-action complaint was sufficiently pleaded. Pontrelli v. MonaVie, Inc., No. 13-4649 (D.N.J., decided August 19, 2014). Attached to the complaint was a MonaVie brochure that included a number of claims about the curative health benefits of the açai berry, as well as purported customer testimonials. The plaintiff claimed that she relied on such representations, did not receive the advertised benefits and would not have purchased the products if she had known that the representations were false. The complaint also alleged that consumers are willing to pay an inflated price for the products—$40 for a 25-ounce bottle—based on the advertised health benefits. The plaintiff also alleged that the company knows its claims are false and that the juice products will not cure any…
Russia has relaxed its food ban against the European Union by clarifying that it will allow imports of salmon and trout hatchlings, potato and onion seed, sugar maize hybrid and peas for planting, lactose-free milk, flavor additives, and food fibers. The move follows criticism from within the country on the effects the import prohibitions would have on Russians, and according to the Moscow Times, it will also ease the bans’ burden on neighboring Finland. To soften the effects on the markets for fruits and vegetables for the rest of Europe, the European Union has set aside €125 million to compensate producers for keeping several of their perishable products off the market to avoid a price collapse. Further information on Russia’s food bans appears in Issue 533 of this Update. See CNN, August 18, 2014, and Moscow Times, August 21, 2014. Within Russia, consumer protection agency Rospotrebnadzor has introduced fines—between 20,000 and…
The People’s Republic of China Ministry of Agriculture has reportedly failed to renew the biosafety permits for two research programs growing genetically modified (GM) corn and rice, raising concerns about the future of GMO production in China. According to media sources, the Agriculture Ministry has not yet authorized any GMOs for public consumption and decided to discontinue further research after a state TV report allegedly identified illegal GM rice varieties in markets located near Huazhong Agricultural University, which was developing Bacillus thuringiensis (Bt) rice. Although Greenpeace representatives and other stakeholders apparently cited public opinion as the motivation behind the announcement, Chinese Academy of Sciences’ Center for Chinese Agricultural Policy Director Huang Jikun suggested that the self-sufficiency of the domestic rice market has made the commercialization of Bt rice unnecessary. In addition, critics of the ministry’s decision have questioned whether the debate over GMO safety has taken a political bent. As…
The U.S. Department of Agriculture’s (USDA’s) Food Safety and Inspection Service is convening a September 25, 2014, public meeting in Washington, D.C., to receive public comments about draft positions to be discussed at the 21st Session of the Codex Committee on Food Import and Export Inspection and Certification Systems of the Codex Alimentarius Commission in Brisbane, Australia, on October 13-17. Issues on the September 25 meeting agenda include (i) a discussion paper on Principles and Guidelines for Monitoring Regulatory Performance of National Food Control Systems and (ii) draft amendments to Guidelines for the Exchange of Information between Countries on Rejections of Imported Food. USDA and the Food and Drug Administration have a public meeting slated for October 23 in Washington, D.C., to provide information and receive public comments about draft positions to be discussed at the 46th Session of the Codex Committee on Food Hygiene in Lima, Peru, on November…
The U.S. Department of Agriculture’s (USDA’s) Agricultural Marketing Service has requested comments “on how a Federal standard of identity for honey would be in the interest of consumers, the honey industry, and U.S. agriculture.” Noting that the Food and Drug Administration in 2011 rejected an industry-backed citizens petition seeking such a standard, USDA as charged by the 2014 Farm Bill will produce a report examining the issue, “including any current industry amendments or clarifications necessary to update the petition.” In particular, USDA points to the existence of several standards for the inspection and grading of honey, including state-level schemes designed to prevent product adulteration. “While some are following the 2006 honey industry petition and using an amended version of the Codex Standard for Honey, CODEX standard 12-1981, Rev. 2 (2001), variations in the state standards of identity for honey are inevitable,” concludes the agency, which will accept comments until September…
