A group of consumers has filed a putative class action asserting that Nestle USA Inc. and Ferrara Candy Co.’s opaque candy boxes contain too much slack fill. Iglesia v. Nestle USA Inc., No. 20-5971 (D.N.J., filed May 15, 2020). The complaint alleges that Ferrara and Nestle “pioneered a scheme to deceptively sell candy in oversized, opaque boxes that do not reasonably inform consumers that they are half empty. Defendants’ ‘slack-fill’ scam dupes unsuspecting consumers across America to pay for empty space at premium prices.” The complaint also features several photos of boxes with portions cut away, purportedly showing the amount of empty space in an unopened package. For alleged violations of New York, New Jersey, Michigan, Illinois, North Carolina, Texas and Florida consumer-protection statutes, the plaintiffs seek an injunction, restitution, damages and attorney’s fees.
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The U.S. Food and Drug Administration (FDA) has published a food-safety checklist for retail food establishments that have been closed or operating in a limited capacity during shelter-in-place orders. The list covers issues that may arise if a facility has been closed, such as ensuring water and sewage lines or coolers and freezers are working, and approaches to slowing the spread of COVID-19, such as social distancing measures and increased outdoor air circulation. Checklist sections include facility operations; water, plumbing and ice; cleaning, disinfecting and sanitizing for food contact and non-food contact surfaces; food temperature control; product inspection and rotation; warewashing equipment; handwashing stations; employee health; and social distancing.
Following an executive order directing the U.S. Department of Agriculture to ensure the continued supply of meat and poultry, twenty state attorneys general have submitted a letter urging President Trump to strengthen guidance for meatpacking facilities by requiring increased access to testing and personal protective equipment, implementation of physical distancing where possible, suspension of line speed waivers, and paid leave for workers in isolation or quarantine following exposure to COVID-19. “The industry’s failure to act earlier to protect its labor force, and the Administration’s lack of leadership and support for testing, procurement of personal protective equipment (PPE), and enforcement of federal worker safety standards, will be among the many regrettable lapses contributing to the tragic story of America’s experience with this pandemic,” the letter asserts. The letter calls for voluntary guidance provided to meatpacking facilities to become mandatory. “Even if these recommendations were sufficient to maintain worker safety, however, they…
The Texas Department of State Health Services has published a proposed rule that would regulate “the manufacture, distribution, and retail sale of consumable hemp and consumable hemp products in the State of Texas.” The rule details licensure for consumable hemp manufacturers or distributors; required testing to determine the presence or concentration of cannabinoids, THC, pathogens, pesticides and heavy metals; packaging and labeling requirements; and enforcement measures. The earliest possible date of adoption for the rule is June 7, 2020.
The estate of a meatpacking plant employee who died from a COVID-19 infection has sued JBS S.A. for negligence, wrongful death, misrepresentation and survival, alleging that the man’s death "was the predictable and preventable result of the JBS Defendants’ decisions to ignore worker safety.” Benjamin v. JBS S.A., No. 200500370 (Pa. C.P., Phila. Cty., filed May 7, 2020). According to the complaint, JBS increased production in March 2020 to meet increased demand for meat as shelter-in-place orders began to take effect across the United States. The estate argues that JBS “failed to provide sufficient personal protective equipment,” “forced workers to work in close proximity,” “forced workers to use cramped and crowded work areas, break areas, restrooms, and hallways,” “discouraged workers from taking sick leave in a manner that had sick workers in fear of losing their jobs,” and “failed to properly provide testing and monitoring for individuals who may have…
A consumer has filed putative class action alleging that Vilore Foods Co. Inc. misleadingly marketed Kern’s Nectar canned beverages as natural because they contain malic acid, “a synthetic chemical that is used to make manufactured food products taste like real fruit.” Gross v. Vilore Foods Co. Inc., No. 20-0894 (S.D. Cal., filed May 13, 2020). The complaint asserts that the products violate the federal Food, Drug and Cosmetic Act because they “contain additional flavoring ingredients that simulate and reinforce the characterizing flavor,” thus requiring Vilore “to disclose those additional flavors rather than misleadingly suggest that the Product is flavored only by the labeled natural juices.” A footnote indicates that the can packaging contained the statement as of 2017 but the “manufacturer apparently has since deleted ‘100% Natural’ on the retail can labels.” The plaintiff seeks damages and injunctions prohibiting deceptive advertising and requiring corrective advertising for alleged violations of California’s…
Shook Partner Katie Gates Calderon and Associate Elizabeth Fessler have authored “Best Practices for Food and Beverage Pricing Right Now” for Law360, which discusses how food and beverage companies may face regulatory actions and reputational damage if they are perceived to have raised their prices too much during the COVID-19 pandemic. “With increased demand and potentially increasing production costs due to supply chain disruptions, many in the food and beverage industry may be wondering how to deal with the economic pressures without running afoul of price-gouging statutes,” Fessler and Gates Calderon write. Many states have different laws governing price-gouging, and those laws often differ on what an acceptable price differential may be. Understanding which state laws apply and documenting all aspects of the reasoning for any price increase are key, they explain, concluding, “If you are contacted about pricing issues, it may be best to contact outside counsel before providing…
President Trump has issued an executive order directing Secretary of Agriculture Sonny Perdue to “ensure the continued supply of meat and poultry” consistent with guidance issued by the Centers for Disease Control and Prevention (CDC) and the Occupational Safety and Health Administration. CDC also issued a report on COVID-19 at meat and poultry processing facilities for the month of April 2020 that found 4,913 cases and 20 deaths among 130,000 workers and cited, among other risks, “crowded, multigenerational” residences and carpooling as relevant factors increasing the likelihood of transmission among employees. The government actions coincide with lawsuits seeking to hold meat and poultry processing plants liable for injury or death caused by COVID-19, including a wrongful death lawsuit brought against Quality Sausage Co. following the death of a forklift driver who allegedly contracted the coronavirus from coworkers. Parra v. Quality Sausage Co., No. DC-20-06406 (Tex. Dist. Ct., filed April 30,…
The Department of Justice (DOJ) has announced that Chipotle Mexican Grill Inc. will pay $25 million and enter a deferred prosecution agreement to resolve criminal charges related to foodborne illness outbreaks that occurred between 2015 and 2018. The deferred prosecution agreement will require Chipotle to comply with an improved food safety program for three years to avoid conviction. “This case highlights why it is important for restaurants and members of the food services industry to ensure that managers and employees consistently follow food safety policies,” a DOJ attorney stated in a press release. “The Department of Justice will vigorously enforce food safety laws in order to protect public health.”
The U.S. Government Accountability Office (GAO) has publicly released its April 2020 report on the partnership between the Food and Drug Administration (FDA) and Department of Agriculture (USDA) on the development of cell-cultured meat. GAO indicated that it began the inquiry after some stakeholders “expressed concern about the agencies' oversight of cell-cultured meat amidst a fragmented federal food safety oversight system.” GAO recommended that “FDA and USDA more fully incorporate leading practices for effective collaboration in the agencies' interagency agreement,” and the agencies “partially concurred and indicated a willingness to incorporate these practices in a more detailed agreement, which would also meet the intent of the recommendations.”
