A Pennsylvania federal court has dismissed without prejudice a consumer lawsuit alleging Herr Foods Inc. labels its snack products as free from added preservatives despite containing citric acid. Hu v. Herr Foods, Inc., No. 165037 (E.D. Pa., order entered April 24, 2017). Additional information on the complaint appears in Issue 609 of this Update. Herr moved for a judgment on the pleadings, arguing that the citric acid in its products was not serving as a preservative. The court dismissed the claim for unjust enrichment but granted leave to amend claims for alleged violations of New York laws governing deceptive acts and practices, noting that the deficiency “is a lack of allegations supporting plaintiff’s conclusory statement that citric acid functions as a preservative in the products, which plaintiff could remedy by pleading appropriate supporting facts.” Issue 632
Category Archives Issue 632
An Ohio company has filed a lawsuit alleging Wisconsin’s ban on sales of ungraded butter violates the Commerce Clause, due process, equal protection and free speech. Minerva Dairy, Inc. v. Brancel, No. 17299 (W.D. Wis., filed April 20, 2017). In early 2017, Wisconsin began enforcing a 1954 law requiring all butter sold in the state to bear either a state or a U.S. Department of Agriculture (USDA) grade mark, telling retailers and producers to remove out-of-state butter from store shelves or risk fines and imprisonment. Minerva Dairy, Inc. argues that the ban serves no rational or legitimate governmental interest. “In contrast to butter inspection, which ensures that the butter comports with health and safety regulations, butter grades are used only to ensure a government-mandated taste,” the complaint argues. Minerva alleges that small companies are unable to afford obtaining USDA grading and creating separate labels solely for Wisconsin sales. Accordingly, the…
A federal court has ruled that three environmental groups lack standing to intervene in a lawsuit to block implementation of the Seafood Import Monitoring Program. Alfa Int’l Seafood v. Ross, No. 170031 (D.D.C., order entered April 17, 2017). The court held that the Natural Resources Defense Council, Oceana and the Center for Biological Diversity failed to establish concrete or particularized injuries “fairly traceable” to the possible vacating of the proposed program, known as the Seafood Traceability Rule. Even if they could, the court found, the groups still had not made a minimal showing that defendant U.S. Department of Commerce was unable to adequately represent their interests in the case. The groups argued that the new administration “might adopt policies that negatively affect the force of the Rule,” but Commerce reported that it supported the program. The court also dismissed the groups’ disagreements with Commerce about the program’s scope and timing…
After reviewing a challenge by the maker of Gerber baby foods, the National Advertising Division (NAD) has recommended that Beech-Nut Nutrition discontinue several advertising claims but rejected complaints that Beech-Nut’s ads implied its baby foods are fresh. NAD warned Beech-Nut against use of the term “coldpuree” unless it “conspicuously” explains that foods are cooked after they are pureed cold. It also recommended that Beech-Nut stop making unsupported claims that “glass is the ultimate in sustainability” and that “glass is nature’s safest container.” Beech-Nut challenged NAD’s jurisdiction, arguing that most of the ads are no longer used, but NAD rejected the challenge and noted that the challenged claims continued to appear on Beech-Nut’s website, in a YouTube video and on product packaging. Issue 632
The World Trade Organization (WTO) has held that Mexico can impose $163 million in trade sanctions against the United States for enacting tougher “dolphin-safe” requirements on fish caught in a part of the Pacific Ocean used primarily by Mexican fishers. The decades-long dispute began when international conservation efforts pressured countries to protect dolphins, which commonly swim with yellowfin tuna in that area. In response, the United States implemented stringent rules for tuna catches and imports, which Mexico argues has shut its fishing businesses out of an import market worth $680 million in 2014. The U.S. revised its requirements after WTO found in favor of Mexico in 2012, but Mexico argued that the revisions still improperly restricted tuna imports and asked for $472 million in sanctions. WTO rejected a U.S. argument to decide the dispute based on 2016 revisions that expanded the same requirements to all countries, but an expected July…
President Donald Trump has indicated that he will attempt to renegotiate the North American Free Trade Agreement after making several negative comments about Canada's dairy pricing. The dispute centers on ultra-filtered milk, a product used in the production of cheese that U.S. dairy farmers previously sold to Canadian companies. After Canadian dairy farmers in Ontario dropped their prices low enough to compete with U.S. farmers, many Canadian cheesemakers canceled contracts with their U.S. suppliers to pursue the Ontario farmers' supply. Trump tweeted, “We will not stand for this,” and later announced that he will attempt to renegotiate the trade agreement with Canada. See USA Today, April 25, 2017; Washington Post, April 27, 2017. Issue 632
A Massachusetts house bill proposing a one- and two-cent tax per fluid ounce of sugar-sweetened beverages (SSBs) has been withdrawn during a state budget hearing. The tax would have applied to SSBs containing more than five grams of sugar but excluded 100-percent juice, milk substitutes, infant formula and beverages for medicinal use. Although sponsor Kay Khan (D) withdrew the proposal, a spokesperson for her office told Bloomberg that she has filed legislation to pursue the tax. See Bloomberg BNA, April 25, 2017. Issue 632
Shook, Hardy & Bacon Partner Cary Silverman explains in an April 17, 2017, Law360 article that a six-fold growth in slack-fill lawsuits stems from a “precise template” developed by plaintiffs' lawyers seeking to pressure companies into outofcourt settlements. “I call them ‘shake the box’ lawsuits,” reports Silverman. “If you can hear the product shake, you’ve got a lawsuit. You just plug it into your template, take a photo, and you’re ready to go.” Law360 quotes Silverman's report on food lawsuits for the U.S. Chamber Institute for Legal Reform, “The Food Court: Trends in Food and Beverage Class Action Litigation,” which he co-authored with Shook Partner Jim Muehlberger. Silverman also presented “All You Can Eat Lawsuits: Restoring Sanity to Food Litigation," discussing the report's findings, for a CLE at the University of Cincinnati College of Law on April 13, 2017. Issue 632
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