A district court erred in denying class certification and granting summary judgment to Sturm Foods and its parent company Treehouse Foods in a putative class action accusing the coffee manufacturer of misleading consumers to believe its Keurig-compatible coffee pods contained high-quality coffee rather than low-quality instant coffee, the Seventh Circuit Court of Appeals has decided. Suchanek v. Sturm Foods, Inc., No. 13-3843 (7th Cir., order entered August 22, 2014). The court found that the district court’s reasoning for denying class certification would make consumer class actions nearly impossible. Combined from four separate consumer protection lawsuits, the case centers on Sturm’s Grove Square Coffee (GSC) pods. The Keurig K-Cup typically contains ground coffee beans and a filter system, but the filter technology was protected by a patent until 2012. In 2010, Sturm began manufacturing pods that could be used in Keurig brewers, but to avoid infringing the patent, the company apparently…
Category Archives Issue 536
New York City Council Member Benjamin Kallos (D-Upper East Side) has introduced legislation (442-2014) that would allow toy giveaways, digital rewards and other incentives only in children’s meals that meet strict nutritional requirements. If adopted, the Healthy Happy Meals Act would define “incentive item” as (i) “any toy, game, trading card, admission ticket or other consumer product, whether physical or digital, with particular appeal to children, which is provided directly by the restaurant,” or (ii) “any coupon, voucher, ticket, token, code or password which is provided directly by the restaurant and is redeemable for or grants digital or other access to any toy, game, trading card, admission ticket, or other consumer product with particular appeal to children.” The proposed rules would require children’s meals that offer such items to contain one serving of fruit, vegetable or whole grains and less than 500 calories and 600 milligrams of sodium. In addition,…
According to the Wall Street Journal, the World Trade Organization (WTO) has decided for Canada and Mexico and against the United States in a battle over country-of-origin labeling (COOL) of meat products. The decision has reportedly been disclosed to the three governments and is expected to be made public in late September or early October, after which the United States has 60 days to appeal. Canada and Mexico argued that the COOL rules harmed them by restricting their competitiveness. In recent months, members of the food industry and of Congress have argued against the COOL requirements. Additional information appears in Issues 529 and 533 of this Update.
The U.S. Department of Agriculture’s Animal and Plant Health Inspection Service (APHIS) seeks public comments on its environmental assessment of the proposed field release of a genetically engineered (GE) diamondback moth. A plant pest that feeds on cruciferous crops, such as broccoli, Brussels sprouts, cabbage, Chinese cabbage, cauliflower, collard, kale, kohlrabi, mustard, radish, turnip, and watercress, the diamondback, also known as the cabbage moth, is said to be highly fecund, capable of migrating long distances when carried by the wind and short lived. Some researchers attribute the increasing significance of the moth as a plant pest to insecticide resistance. The GE variety has been developed for “repressible female lethality and to express red fluorescence as a marker.” According to APHIS, “The purpose of the field release is to assess the feasibility and efficacy of these moths in reducing populations of non-genetically engineered diamondback moths.” Cornell University requested the permitted field…
The Department of Commerce has issued an affirmative preliminary determination in a countervailing duty (CVD) investigation of sugar imports from Mexico, and the United States is preparing to impose import duties as high as 17 percent on Mexican sugar. According to an International Trade Administration fact sheet, the CVD investigation was instituted in March 2014 after domestic sugar interests filed a petition seeking relief from “the market distorting effects caused by injurious subsidization of imports into the United States.” Beginning the first week of September, Commerce will instruct U.S. Customs and Border Protection to require cash deposits based on the preliminary subsidy rates calculated for different Mexican exporters. A final determination in the matter is scheduled for January 2015. An American Sugar Alliance spokesperson said that the August 26, 2014, determination “validates our claim that the flood of Mexican sugar, which is harming America’s sugar producers and workers, is subsidized…
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