Two people have been convicted of conspiracy in charges related to a scheme to distribute counterfeit 5-Hour Energy drinks. United States v. Shayota, No. 15-0264 (N.D. Cal., verdict entered November 28, 2016). The couple, Joseph and Adriana Shayota, produced several million bottles of a drink manufactured under unsanitary conditions and labeled the drink with 5-Hour Energy's packaging. Before beginning that scheme, the couple reportedly bought 5-Hour Energy drinks intended for the Mexican market, repackaged them and sold them in the United States for a price well below the retail price. Six other defendants pleaded guilty to similar charges, and 5-Hour Energy maker Living Essentials won a $20-million civil judgment in March 2016. See Los Angeles Times, November 30, 2016. Issue 624
Category Archives Issue 624
A consumer has filed a putative class action against Buffalo Trace Distillery, Inc., Old Charter Distillery Co. and Sazerac Co. alleging the companies misrepresent Old Charter Bourbon as aged for eight years before entering the market. Parker v. Buffalo Trace Distillery, Inc., No. 16-8986 (S.D.N.Y., filed November 18, 2016). The complaint argues that Old Charter was aged for eight years before a switch in manufacturing practices in 2014, and the bottle's labels were adjusted to remove the eight-year claim. Where the label once said "Aged 8 years," the label was changed to merely display an 8; in another spot on the label, the text reads, "gently matured for eight seasons." The plaintiff alleges negligent misrepresentation, fraud, breach of warranty, unjust enrichment and violations of New York and federal law. Issue 624
Three consumers have filed a lawsuit against Chipotle Mexican Grill, Inc. alleging the company misrepresents the calorie counts of its food in store menus, boards and advertising. Desmond v. Chipotle Mexican Grill, Inc., No. BC640700 (Cal. Super. Ct., Los Angeles Cty., filed November 15, 2016). The complaint asserts that the defendants each relied upon a menu board displaying a photo of a burrito with chorizo and "300 calories" to order what they believed to be a low-calorie option, then realized after eating it that "the burrito couldn't have been just 300 calories." The plaintiffs seek damages and attorney's fees for alleged violations of California's consumer-protection statutes. Issue 624
The North American Olive Oil Association (NAOOA) has filed a lawsuit against Mehmet Oz of "The Dr. Oz Show" alleging he falsely told his audience in a May 2016 episode that 80 percent of olive oil sold in supermarkets is fraudulent. N. Am. Olive Oil Ass'n v. Oz, No. 283156 (Ga. Super. Ct., Fulton Cty., filed November 29, 2016). The complaint asserts that Oz told viewers: "So how does it become fake, if it's just fresh olive juice? . . . Adulterated oil . . . takes some of the real oil and mixes it with fake olive oil substitute. To make the fake olive oil, you take an oil with no flavor or color like sunflower oil, add some coloring in there like chlorophyll to give it that rich green hue, then you mix that in with some of the real stuff, into extra virgin olive oil, and then,…
The Center for Science in the Public Interest (CSPI) has petitioned the U.S. Department of Agriculture (USDA) for "a Label on Processed Meat and Poultry Products Warning the Public that Frequent Consumption May Increase the Risk of Colorectal Cancer." Citing the International Agency for Research on Cancer's finding that smoked, salted and/or cured bacon, hot dogs, ham, sausages and similar products are "carcinogenic to humans," CSPI argues that epidemiological studies backed by "mechanistic evidence" support the alleged link between processed meat and an increased risk of colorectal cancer. The group also points to similar conclusions drawn by the World Cancer Research Fund International, American Institute for Cancer Research, Imperial College London and the American Cancer Society, the latter of which "advises the public to 'minimize consumption of processed meats such as bacon, sausage, luncheon meats, and hot dogs' based on evidence that the risk of colorectal cancer increases by 15…
