An independent special litigation committee (SLC) recently filed a comprehensive report detailing the actions of Chiquita Brands International executives, directors and counsel that led to the $25 million settlement of a Justice Department investigation into the company’s illegal payments to Colombian terrorist groups. The SLC recommends that shareholder litigation stemming from the payments, settlement and purported “fire sale” of the company’s Colombian banana business be dismissed because the SLC found no evidence that any defendant acted in bad faith. The SLC also found that the litigation will inflict “substantial further damage on the Company,” the costs outweigh any potential recovery, “an event of this nature is unlikely to recur,” and the shareholder litigation “would serve to further divert management from its core mission.” The report explains that payments were made to both right-wing and left-wing groups in Colombia to protect the company’s workers and property. Until the recipients were declared…
Category Archives U.S. Government and Regulatory Agencies
The U.S. Department of Agriculture (USDA) has announced the first wide-scale survey of organic farming to ascertain how the growth of such practices is changing the face of American agriculture. The Organic Production Survey will examine organic farming that took place during the 2008 calendar year, including production and marketing practices, income and expenses. “This is an opportunity for organic producers to share their voices and help ensure the continued growth and sustainability of organic farming in the United States,” USDA Secretary Tom Vilsack said. Survey results will apparently help shape future farm policy, funding allocations, availability of goods and services, community development, and other key issues. USDA’s National Agricultural Statistics Service (NASS) will mail the survey in early May 2009 to all known U.S. organic producers, who are asked to respond by June 17, 2009. Participants can also complete the survey online. NASS will publish results in winter 2009.…
The Food and Drug Administration (FDA) has prepared a summary of the comments and information provided during a 2007 hearing on the use of symbols to communicate nutrition information. Posted to the hearing docket on April 28, 2009, the document notes that significant gaps remain in research about consumer perception, understanding and use of symbols that convey information about nutrition claims on food products. According to the FDA, numerous nutrition symbol systems already exist, but because they “differ greatly,” “the ability of consumers to use these symbols to make nutritional comparisons between products or to determine how a food fits into a diet is uncertain.” FDA commissioned a focus group study and “is currently analyzing qualitative information collected from the study to explore varieties and ranges of consumers’ understanding of and reactions to a selected sample of existing and alternative nutrition symbols.” The agency also apparently needs more information about…
The Food and Drug Administration (FDA) has confirmed April 27, 2009, as the effective date for the final rule titled “Substances Prohibited From Use in Animal Food or Feed,” which establishes “measures to further strengthen existing safeguards against bovine spongiform encephalopathy (BSE).” The agency earlier this month considered delaying the rule for 60 days after industry stakeholders requested additional time to arrange alternative disposal methods for high-risk materials. In light of these requests, FDA has set an October 26, 2009, compliance date for renderers and other affected persons, but believes that “the rendering, livestock, meat and animal feed industries have addressed many of the compliance and carcass disposal challenges and are prepared to meet the April 27, 2009, effective date of the final rule.” See Meatingplace.com, April 23, 2009; Federal Register, April 24, 2009.
The Federal Trade Commission (FTC) has announced that Kellogg Co. agreed to settle false-advertising charges involving Frosted Mini-Wheats® advertisements that claimed the product was “clinically shown to improve kids’ attentiveness by nearly 20 percent.” According to FTC, the clinical study on which the ads were based showed that “only about half the children who ate Frosted Mini-Wheats for breakfast showed any improvement in attentiveness, and only about one in nine improved by 20 percent or more.” Under the consent order, Kellogg agrees to pull its offending ads and not to express or imply that its cereal improves attentiveness “unless, at the time [the claim] is made, the representation is true and non-misleading.” The company also agreed not to make any representation “about the benefits, performance, or efficacy of such product for cognitive function, cognitive processes, or cognitive health, unless the representation . . . relies upon competent and reliable scientific…
The Federal Trade Commission (FTC) has apparently proposed amending its advertising guidelines to hold companies and paid word-of-mouth marketers, including bloggers and those on social networking sites, liable for making false statements to promote products. According to an FTC spokesperson, the proposal would bring the commission up to speed with evolving marketing practices. “The commission is attempting to update guidelines that are 30 years old so that they address current marketing techniques and in particular to address the issue of whether or not the safe harbor that’s currently allowed for ‘result not typical’-type disclaimers is still warranted,” he was quoted as saying. Meanwhile, a public comment submitted by the American Association of Advertising Agencies has reportedly urged FTC to reconsider “overly stringent amendments that will likely result in advertisers abandoning longstanding legitimate advertising techniques, such as consumer testimonials, and rejecting new media forms, such as blogs and viral marketing.” The…
The Office of the Acting Deputy Undersecretary for Food Safety, U.S. Department of Agriculture and U.S. Food and Drug Administration have announced a public meeting on April 29, 2009, to discuss draft U.S. positions for the 18th Session of the Codex Committee on Residues of Veterinary Drugs in Foods (CCRVDF) slated for May 11-15, 2009, in Natal, Brazil. CCRVDF works to (i) establish “priorities for the consideration of residues of veterinary drugs in foods”; (ii) “recommend maximum levels of such substances”; (iii) “develop codes of practice as may be required”; and (iv) consider methods of sampling and analysis for the determination of veterinary drug residues in foods.” The session will include agenda items related to (i) the “registration of veterinary medicinal products”; (ii) “draft guidelines for the design and implementation of national regulatory food safety assurance programs”; and (iii) a “draft priority list of veterinary drugs requiring evaluation or reevaluation.”…
The U.S. Department of Agriculture (USDA) and the Department of Health and Human Services (HHS) have announced the third meeting of the Dietary Guidelines Advisory Committee charged with revising the Dietary Guidelines for Americans 2005. Slated for April 29 and 30, 2009, the online meeting will include (i) presentations on topics such as “eating environment, economics, nutrient adequacy, and effects of various macronutrient meal plans on weight status”; (ii) progress updates from individual subcommittees; and (iii) plans for future work of the committee. Written comments pertinent to this meeting must be received by 5 p.m. on April 23, although comments will be accepted throughout the committee’s deliberation process. See Federal Register, April 14, 2009.
The U.S. Department of Agriculture’s (USDA) Animal Plant Health Inspection Service has announced a public meeting on April 29 and 30, 2009, in Riverdale, Maryland, to address a proposed rule involving the interstate movement and environmental release of certain genetically engineered (GE) organisms. The comment period on the proposed rule has been extended to June 29, 2009. See Federal Register, April 13, 2009.
Federal Trade Commission (FTC) Chair Jon Leibowitz has reportedly named David Vladeck as director of the commission’s Bureau of Consumer Protection. Vladeck, who leaves the Georgetown University Law Center faculty, is apparently a 30-year veteran of the Public Citizen Litigation Group and, as such, is expected to pursue a consumer-protection agenda. Representatives of other public advocacy organizations are applauding the selection and have expressed their hope that “he will pay special attention to advertising and marketing to children.” Vladeck co-authored a law review article with former Food and Drug Administration Commissioner David Kessler to criticize the preamble to the FDA’s 2006 prescription drug labeling rule, which set forth a pro-preemption policy. In the article, titled “A Critical Examination of the FDA’s Efforts to Preempt Failure-to-Warn Claims,” the authors conclude, “it would be a mistake to preempt state-law failure-to-warn cases, which impose a complementary discipline on the marketplace.” See Advertising Age and…
