New York and New Jersey residents have filed a putative nationwide class action with two statewide subclasses against General Mills, Inc. in a Minnesota federal court, alleging that the company has violated federal and state consumer fraud laws by marketing its Nature Valley snack bars as “100% Natural” when they contain high-fructose corn syrup and other non-natural ingredients. Chin v. General Mills, Inc., No. 12-2150 (D. Minn., filed August 31, 2012). The plaintiffs also allege that the products contain highly processed high-maltose corn syrup and the texturizer maltodextrin. They allege that they relied on the company’s marketing and advertising and purchased its products “believing them to be 100% natural,” but sustained “injury in fact and lost money as a result of General Mills having misrepresented the Nature Valley Products.” According to the complaint, General Mills incorporates the “100% Natural” claim into its primary branding of the Nature Valley products and…
Category Archives U.S. Circuit Courts
The Ranchers-Cattlemen Action Legal Fund, United Stockgrowers Association (R-CALF USA) has filed a complaint for declaratory and injunctive relief in a Colorado federal court against the World Trade Organization (WTO) and U.S. Department of Agriculture Secretary Tom Vilsack, alleging that WTO’s determination that the U.S. Country of Origin Labeling Act (COOL) imposes discriminatory burdens on meat imported from Canada and Mexico is contrary to U.S. law and the Uruguay Round Agreements. Made in the USA Foundation, Inc. v. WTO, No. 12-2337 (D. Colo., filed September 1, 2012). Details about WTO’s ruling appear in Issue 419 of this Update. With some 5,400 members in 45 states, R-CALF USA apparently worked with Congress to pass the COOL legislation “that reserves the USA label for only cattle born, raised, and slaughtered in the U.S.A.” The complaint alleges that the plaintiffs will lose income as a result of WTO’s ruling and that its members “are…
The manager of an Iowa egg farm that recalled 550 million eggs in a 2010 Salmonella outbreak that may have sickened 2,000 people has reportedly entered a guilty plea to a charge of conspiring to bribe a public official to allow the sale of eggs that failed to meet federal standards. United States v. Wasmund, No. 12-3041 (N.D. Iowa, plea entered September 12, 2012). According to Tony Wasmund’s attorney, the former manager, who oversaw some of the enterprises owned by Jack DeCoster, is cooperating with government authorities. The indictment charged Wasmund with authorizing the use of $300 in petty cash to be used by a colleague to bribe a U.S. Department of Agriculture inspector assigned to DeCoster’s Wright County egg farm. The bribe was purportedly intended to persuade the inspector to approve the sale of shell eggs that had been withheld for falling short of applicable USDA standards. Prosecutors apparently refused…
A federal court in New Jersey has found that most of the named plaintiffs in putative class actions consolidated in a multidistrict litigation (MDL) proceeding lack standing to pursue claims that General Mills, Inc. violated consumer fraud laws by claiming that its Cheerios cereal products reduce cholesterol, the risk of heart disease and certain forms of cancer. In re Cheerios Mktg. & Sales Practices Litig., No. 09-2413 (D.N.J., decided September 10, 2012) (unpublished). Under a choice-of-laws analysis, the court found that California, New Jersey and New York law applied to the claims and thus dismissed four counts alleging violations of Minnesota law. The court also found that most of the named plaintiffs consumed the cereal for reasons other than health benefits, did not know what the cereal cost or had not read the product labels. Accordingly, the court granted the company’s motion for summary judgment as to five of the named plaintiffs.…
The Ninth Circuit Court of Appeals has withdrawn its previous opinion reversing an order that approved the settlement of class claims against Kellogg Co., although it has reached the same conclusion in its new opinion. Dennis v. Kellogg Co., Nos. 11-55674, -55706 (9th Cir., decided September 4, 2012). Information about the withdrawn opinion is included in Issue 447 of this Update. The plaintiffs claimed that Kellogg lacked supporting scientific evidence for marketing and promotional statements that some of its cereal products could improve children’s cognitive functions. Apparently, the court had failed to consider the plaintiffs’ preliminary argument that it could not address the validity of the cy pres distribution of funds that remained in the settlement fund. They contended that the issue “will not be ripe until it is determined that available cash remains in that fund after the claims process has concluded.” As the court observed in a footnote…
The manufacturer that sells the Bosch®, Thermador® and Gaggenau® brands of home appliances has sued the Julia Child Foundation for Gastronomy and the Culinary Arts seeking a declaration that it has not infringed the defendant’s trademarks and copyrights or the publicity rights related to the late Julia Child. BSH Home Appliances Corp. v. The Julia Child Found. for Gastronomy & the Culinary Arts, No. 12-11590 (D. Mass, filed August 24, 2012). According to the complaint, Julia Child used the plaintiff’s Thermador® oven for many years both on the set of The French Chef TV program and in her personal kitchen, which, after she died, was donated to and appears in the Smithsonian Institution. The oven maker claims that it has used images of Julia Child “and references to the well-known historical fact of her use of Thermador products in various media, including on its website and on its social media web…
The Center for Food Safety and Center for Environmental Health have filed a complaint for declaratory and injunctive relief against the Food and Drug Administration (FDA) alleging that the agency has unlawfully delayed adopting implementing regulations under the Food Safety Modernization Act (FSMA). Ctr. for Food Safety v. Hamburg, No. 12-4529 (N.D. Cal., filed August 29, 2012). According to the complaint, FDA has missed seven statutory deadlines thus “failing to implement FSMA’s major food safety regulations.” Characterizing the failure as “an abdication of the agency’s fundamental responsibilities,” the plaintiffs claim that this delay “is putting millions of lives at risk from contracting foodborne illnesses.” They also sued the Office of Management and Budget, claiming that it has also missed statutory deadlines in failing to approve the implementing regulations that FDA has submitted for its review. The complaint recites Centers for Disease Control and Prevention estimates that one in six Americans…
A federal court in California has granted in part the motion to dismiss filed by the defendant in a putative class action alleging that it falsely misrepresents its smoothie kits as “All Natural” when they actually contain “unnaturally processed, synthetic and/or non-natural ingredients,” such as ascorbic acid, citric acid, xanthan gum, and steviol glycosides.” Anderson v. Jamba Juice Co., No. 12-1213 (N.D. Cal., order entered August 25, 2012). Additional information about the case appears in Issue 432 of this Update. The court agreed with Jamba Juice that the plaintiff had failed to state a warranty claim under the Magnuson-Moss Warranty Act, because “the statement ‘All Natural’ is a general product description rather than a promise that a product is defect free.” Still, the court dismissed the plaintiff’s claim for breach of express warranty under the Act with leave to amend “to the extent some other basis may exist for this…
The Seventh Circuit Court of Appeals has determined that a Steak 'n Shake franchisee in Illinois was entitled to a preliminary injunction to stop the implementation of a new Steak 'n Shake policy for menu pricing and promotions. Stuller, Inc. v. Steak N Shake Enters., Inc., No. 11-2656 (7th Cir., decided August 24, 2012). The franchisee, in operation for more than 70 years, owns five restaurants and is the oldest Steak 'n Shake franchisee in the country. While Steak 'n Shake controls many aspects of restaurant management, some aspects are left to individual franchisees. Plaintiff Stuller, Inc. has had the ability to set menu prices throughout its history, but in June 2010, Steak 'n Shake demanded that all franchisees follow its menu pricing and promotions. Stuller brought a declaratory judgment action against Steak 'n Shake after the franchisor threatened to terminate Stuller’s franchises for refusing to implement the new policy. The…
A divided D.C. Circuit Court of Appeals has determined that the graphic antismoking images which the Food and Drug Administration (FDA) selected for placement on cigarette packages for the purpose of reducing smoking rates in the United States fail the intermediate scrutiny standard for compelled commercial speech. R.J. Reynolds Tobacco Co. v. FDA, No. 11-5332 (D.C. Cir., decided August 24, 2012). According to the court, which vacated the graphic warning requirements and remanded to the agency, “FDA failed to present any data much less substantial evidence required under the [Administrative Procedure Act]—showing that enacting their proposed graphic warnings will accomplish the agency’s stated objective of reducing smoking rates.” The court discusses the different standards applied when deciding whether government efforts to regulate speech are permissible under the First Amendment. A strict scrutiny standard, for example, gives government little leeway to compel or proscribe speech and imposes a heavy burden on…