Category Archives 2nd Circuit

A consumer has alleged that TGI Friday's Inc. misleads consumers with the name of its "Potato Skins," including the "Cheddar & Bacon," "Bacon Ranch" and "Sour Cream & Onion" varieties, because the products contain only "potato flakes" and "potato starch." Troncoso v. TGI Friday's Inc., No. 19-2735 (S.D.N.Y., filed March 27, 2019). The plaintiff alleges that the "labeling deceives consumers into believing that they are receiving a healthier snack, but Defendant's products do not live up to these claims." "The online version of the San Francisco Chronicle, sfgate.com, published an article titled, 'The Benefits of Eating Potato Skins,' touting many nutritional benefits in consuming potato skins, noting their high content of vitamin B-6, vitamin C, thiamin, niacin, iron, potassium, magnesium, and fiber," the plaintiff asserts. "Similar articles and blog posts can be found on the Internet, where many reasonable consumers believe it to be the case." The complaint explains that…

The U.S. Court of Appeals for the Second Circuit has affirmed a lower court's dismissal of a lawsuit alleging that the name "Diet Pepsi" misleads consumers into believing that the product will assist with weight loss. Manuel v. Pepsi-Cola Co., No. 18-1748 (2nd Cir., entered March 15, 2019). "The studies cited by the complaint establish, at most, that people who drink beverages containing non‐nutritive sweeteners continue to gain weight," the appeals court found. "None of the studies purports to establish a causal relationship between non‐nutritive sweeteners and weight gain to a degree that is sufficiently strong. Therefore, Plaintiffs cannot raise a plausible inference that the use of the word 'diet' is false, inaccurate, or misleading. Accordingly, the district court properly dismissed the complaint."

A consumer has filed a putative class action alleging that L & K Coffee Co. misleads consumers by selling a blend of coffee it labels as "Kona," which allegedly refers to a distinctive geographic region in Hawaii. Faison v. L & K Coffee Co., No. 19-1248 (E.D.N.Y., filed March 3, 2019). The complaint asserts that authentic Kona coffee has identifiable "concentration ratios of strontium-to-zinc and barium-to-nickel," and testing purportedly found different ratios in L & K's Kona coffee. "A reasonable consumer would not expect a product labeled a Kona blend to contain 100% Kona, but would expect an amount significant enough to characterize the overall blend, and that amount is absent from the Products," the plaintiff argues. For allegations of fraud, negligent misrepresentation, unjust enrichment and violations of New York consumer-protection statutes, he seeks injunctive relief, damages and attorney's fees.

A consumer has filed a putative class action alleging that Cento Fine Foods Inc. misleadingly markets its tomatoes as "Certified San Marzano" without having the proper certification. Sibrian v. Cento Fine Foods Inc., No. 19-0974 (E.D.N.Y., filed February 19, 2019). San Marzano tomatoes are grown vertically with supports in San Marzano sul Sarno in Italy, the complaint asserts. Cento's San Marzano cans feature a logo for an Italian agency that "does not 'certify' that the Products are compliant with the San Marzano guidelines, and it is actually an entity which may have performed the [U.S. Department of Agriculture] Organic certification," the complaint argues. Cento's website also identifies a company that "verifies that the Products conform to the San Marzano official criteria," but the plaintiff alleges that the company "is believed to be the company which supplies defendant with San Marzano seeds and possibly certifies whether the Products are organic, as…

A consumer has alleged that Snack Innovations Inc.'s Drizzilicious rice cakes are advertised as containing white chocolate but only contain "imitation flavoring." Morrison v. Snack Innovations Inc., No. 19-1238 (S.D.N.Y., filed February 8, 2019). The complaint asserts that "white chocolate," by U.S. regulations, contains cocoa butter, dairy ingredients and sweetener, including 20 percent cocoa butter and 3.5 percent milk fat by weight. "The imitation white chocolate in the Products do not have cocoa butter or milk fat as required, and instead have other cheap confectionary ingredients to imitate the taste of white chocolate." The plaintiff alleges fraud and violations of New York consumer-protection statutes and seeks class certification, damages, corrective advertising and attorney's fees.

Consolidated litigation to determine whether Kind LLC misleads consumers by marketing its products as "all natural" and made without genetically modified organisms (GMOs) will continue after a two-year delay. In re Kind LLC "Healthy and All Natural" Litig., No. 15-2645 (S.D.N.Y., entered February 11, 2019). The court previously stayed the litigation in anticipation of U.S. Food and Drug Administration (FDA) guidance documents on when the uses of "natural" and "non-GMO" are appropriate on food labeling. "Given that there is no reason to continue the stay on the 'non-GMO' claims and that neither party wishes to litigate the claims in piecemeal fashion, it makes sense to begin discovery," the court held. "Moreover, this Court explained that the case for lifting the 'all natural' stay would be 'substantially stronger' if the FDA failed to provide guidance by August 2018. Six months later, guidance is still awaited. It is time for this multi-district…

Following a settlement with California district attorneys making similar allegations, Russell Stover and Ghirardelli Chocolates have been targeted in a New York putative class action alleging the companies' chocolate packages are "predominantly empty" "through the large void spaces which comprise most of the packaging interior around the actual few items contained therein." Faison v. Russell Stover Chocolates LLC, No. 19-0721 (E.D.N.Y., filed February 5, 2019). The complaint asserts that consumers cannot see the chocolates in the opaque packaging, "causing them to believe the chocolate contents filled all, most, or more of the packaging than they actually did." The plaintiff seeks class certification, injunctive relief, damages and attorney's fees for allegations of unjust enrichment, fraud, negligent misrepresentation, breach of warranties and violations of New York's consumer-protection statutes.

Two consumers have alleged that National Beverage Corporation misleads buyers of LaCroix sparkling water because it advertises the products as “all natural” and “100% natural” while they contain flavors composed of “between 36% and 98% synthetic ingredients.” Graham v. Nat’l Beverage Corp., No. 19-0873 (S.D.N.Y., filed January 29, 2019). The complaint cites the Center for Applied Isotope Studies at the University of Georgia, which uses “compound specific stable isotope analysis [] and gas chromatography isotope ratio mass spectrometry to generate multi-component, multi-element data for the enhanced characterization of organic chemical processes and source validation.” The plaintiffs seek class certification, injunctions, damages and attorney’s fees for alleged violations of New York consumer-protection law, unjust enrichment and breach of warranties.

A consumer has filed a putative class action alleging Mondelez Global LLC misleads consumers by making its Honey Maid graham crackers primarily with white flour rather than graham flour. Kennedy v. Mondelez Global LLC, No. 19-0302 (E.D.N.Y., filed January 15, 2019). The complaint alleges that Honey Maid products are marketed as "graham crackers" while the ingredients panel lists "unbleached enriched flour" first and "graham flour" second. The plaintiff cites Dictionary.com to assert that consumers expect a "graham cracker" to be "a slightly sweet cracker made of whole wheat flour" and that any cracker made with more white than graham flour cannot be called a graham cracker. The plaintiff seeks class certification, injunctive relief, damages and attorney's fees for an alleged violation of New York consumer-protection law, negligent misrepresentation, fraud, unjust enrichment and breach of warranties.

A plaintiff has alleged that Food for Life Baking Co. Inc. misled consumers by advertising its cereal product, Ezekiel 4:9, as nutritionally superior to comparable cereal products because it is made with sprouted grains. Elliott v. Food for Life Baking Co. Inc., No. 19-0249 (E.D.N.Y., filed January 13, 2019). The complaint asserts that Ezekiel 4:9's labeling makes nutrient claims comparing its sprouted grains to non-sprouted grains without including "any reference food upon which the relative claims are based, which is misleading because there is no way to accurately evaluate the statements regarding the higher nutritional values of sprouted grains compared to non-sprouted grains." In addition, the complaint contests Ezekiel 4:9's assertion that the grains are a "living food" because "by the time the sprouted grain is dried, grounded into flour and heated, any nutritional benefits which may have existed have been extinguished." For allegations of fraud, negligent misrepresentation, unjust enrichment,…

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