Category Archives Issue 626

Slim-Fast Foods Co. has ended its “100 Calories Snacks” advertisements appearing in Star magazine after the advertising industry’s self-regulation investigative unit, the National Advertising Division, determined that the format of the ads could mislead consumers into believing they were part of the publication’s editorial content. The cover of Star featured “what appeared to be an article on weight loss that claimed, ‘Joann LOST 40 lbs’ and ‘snack away the weight,’” which directed readers to a page with a piece titled “Snack Your Way to Slim” that detailed three women’s efforts to lose weight and how Slim-Fast snacks supposedly helped. Slim-Fast has reportedly agreed to discontinue the advertisements at issue as well as the advertising format.   Issue 626

The University of Connecticut’s Rudd Center for Food Policy and Obesity has released a study on TV food advertising viewed by preschoolers, children and adolescents, claiming that “food advertising exposure increased with age for both black and white youth, but black youth viewed approximately 50% or more ads than did white youth of the same age.” F. Fleming-Milici and J. L. Harris, “Television food advertising viewed by preschoolers, children and adolescents: contributors to differences in exposure for black and white youth in the United States,” Pediatric Obesity, December 2016. Based on Nielsen panel data gathered between 2008 and 2012, the study reports that “increases in food-ads-per-hour increased exposure for all youth,” but that greater TV viewing and higher rates of advertising “on youth- and black-targeted networks both contributed to black youth’s greater exposure.” “Four product categories contributed almost 60% of food ads viewed by all youth in 2012: breakfast cereals,…

John Fox, former owner of wine shop Premier Cru, has reportedly been sentenced to 6.5 years in prison after pleading guilty to wire fraud and defrauding investors out of at least $45 million. As part of the scheme, Fox sold wine to customers around the world, embezzled the money, then used newer purchasers’ money to buy and ship the wine promised to earlier purchasers, an arrangement one prosecutor called a “wine Ponzi scheme.” Fox reportedly spent the money on luxury cars, personal credit cards and gifts for women he met online. He began serving his sentence immediately. See Los Angeles Times, December 15, 2016.   Issue 626

The plaintiff in a purported class action asserting that Herr Foods Inc. mislabels its packaged snacks as “natural” has filed a motion to disqualify defense counsel, alleging the attorney repeatedly made “extortionate threats” and committed professional misconduct. Whitaker v. Herr Foods, Inc., No. 16-2017 (E.D. Penn., motion filed December 14, 2016). The plaintiff’s motion follows Herr Foods’ motion for summary judgment, which asserted that the plaintiff could not possibly have purchased the products he claimed and that he is “a wholly inadequate lead plaintiff” because of “his faulty memory,” “his lengthy history of felony convictions involving theft and dishonesty and his potential mental health problems.” The plaintiff’s motion for disqualification alleges the defense attorney told the plaintiff that Herr Foods directed him to file for sanctions and refer the plaintiff to the district attorney’s office for an attempted criminal extortion investigation. “If you would like to talk about an agreement…

A consumer has filed a projected class action against Tradewinds Beverage Co. alleging the company’s iced tea products are misleadingly labeled as natural despite containing caramel color. Martin v. Tradewinds Beverage Co., No. 16-9249 (C.D. Cal., filed December 14, 2016). The plaintiff argues that she regularly paid a premium for Tradewinds Iced Tea products believing them to be made of all-natural ingredients. For alleged violations of California’s consumer-protection statutes, she seeks a corrective advertising campaign, destruction of all misleading advertising materials, restitution, damages and attorney’s fees.   Issue 626

A California federal court has dismissed a lawsuit alleging Kellogg Co. misrepresents its Mother’s® Cookies products as free of trans fats despite containing partially hydrogenated oil (PHO). Hawkins v. Kellogg Co., No. 16-147 (S.D. Cal., order entered December 13, 2016). Details about the dismissal of a similar case involving the same plaintiff appear in Issue 592 of this Update. The court held that the plaintiff had standing to sue based on the health effects of inflammation and organ damage associated with the consumption of PHO, noting that Kellogg’s response to the arguments focused on the insufficiency of speculative future risks for standing rather than the current effects. The court then turned to federal law governing the plaintiff’s claims and found that because PHO is currently permitted in food until June 2018, the plaintiff could not plausibly allege that Kellogg violated federal law. Further, her state law claims were preempted by…

A California federal court has granted the U.S. Department of Agriculture’s (USDA’s) motion for summary judgment in a case alleging the agency acted arbitrarily in denying a petition to prohibit foie gras produced from force-fed poultry. Animal Legal Def. Fund v. USDA, No. 12-4028 (C.D. Cal., order entered December 14, 2016). In the petition for rulemaking, several animal rights organizations and individuals argued force-feeding poultry caused hepatic lipidosis in the animals, rendering them unhealthy and unsafe for consumption; USDA’s Food Safety Inspection Service (FSIS) disagreed, finding that the buildup of fat from force-feeding did not make the liver unsafe to consume, unlike buildup related to disease. The court first determined that the Animal Legal Defense Fund and other plaintiff organizations had standing to sue, but the plaintiff individuals did not. Turning to the merits of the case, the court considered the plaintiffs’ three challenges to FSIS’s decision: (i) “its explanation for…

The U.S. Department of Agriculture’s Office of the Deputy Under Secretary for Food Safety and the Agricultural Marketing Service are convening a January 17, 2017, public meeting in Washington, D.C., to evaluate draft positions for consideration at the 3rd Session of the Codex Committee on Spices and Culinary Herbs (CCSCH) slated for February 6-10 in Chennai, India. Agenda items for the January 17 meeting include draft standards for cumin, thyme and oregano; a draft standard for black, white and green pepper; and sampling plans for cumin and thyme. See Federal Register, December 14, 2016.   Issue 626

The Federal Trade Commission’s (FTC’s) second public forum targeting the privacy and security implications of emerging technologies will cover topics that include (i) the Internet of Things and big data, (ii) mobile privacy, (iii) consumer privacy expectations, (iv) online behavioral advertising, and (v) information security. Slated for January 12, 2017, at the FTC’s Constitution Center in Washington, D.C., the event will also be available via live webcast. Details about the agenda and a pre-conference networking event are available at FTC's website. See FTC News Release, December 16, 2016.   Issue 626

Citing the need to help curb food loss and waste, the U.S. Department of Agriculture’s Food Safety and Inspection Service (FSIS) has announced new guidance that encourages food manufacturers and retailers to use the phrase “Best if Used by” on date labeling. Infant formula is the only product currently subject to mandatory date labeling under federal law. Date labeling for other food and beverage products is voluntary, and the variety of “Sell by” and “Use by” phrasing used to describe quality dates has apparently led to the early disposal of products that are still safe to consume. See FSIS News Release, December 14, 2016.   Issue 626

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