The U.S. Supreme Court has denied a petition seeking review of a California Supreme Court ruling that allowed plaintiffs to pursue putative class claims alleging that grocery stores failed to inform California consumers about the artificial coloring used in the farm-raised salmon they sold. Albertson’s Inc. v. Kanter, No. 07-1327 (U.S., certiorari denied January 12, 2009). The retailers had asked the Court to find the claims preempted by the Food, Drug, and Cosmetic Act. The case should now proceed to trial. Food and Drug Administration regulations allow salmon farmers to augment the normally grayish pigment of farm-raised fish with chemicals, but also require that the use of coloring be indicated on product labels. Federal law does not allow individuals to enforce the law through litigation, but it does not, according to attorneys involved in the case, bar civil lawsuits for violations of state law. The litigation was brought on both federal and…
Category Archives U.S. Circuit Courts
A California woman who claimed that Wendy’s International, Inc. violated state consumer protection laws by misrepresenting the trans fat content of its French fries and fried chicken products has entered a settlement agreement with the fast-food company. Yoo v. Wendy’s Int’l, Inc., No. 07-4515 (C.D. Cal., settlement filed December 2008). For purposes of the settlement, the parties agreed to the certification of a nationwide class of those who purchased Wendy’s fries and chicken for the past two years. Without conceding any liability, Wendy’s agreed to (i) eliminate trans fat from its frying process, (ii) submit to independent testing, (iii) donate $1.8 million to cancer, diabetes and heart associations, and (iv) not oppose a fee award of up to $1.09 million to class counsel in the Yoo action. Attorneys representing class claimants in similar litigation filed in New York and Florida will share the fee distribution. Wendy’s also agreed to attribute the $2.2…
According to news sources, litigation has been filed in California challenging a new law that prohibits the sale or distribution of food from nonambulatory livestock. One of the suits, filed in late December 2008 by the National Meat Association, claims that the state’s hog industry should be exempt. An association spokesperson reportedly indicated that “hog fatigue” causes hogs to lie down occasionally, but that nothing is wrong with these animals. The American Meat Institute (AMI) filed a motion to intervene, arguing that the law as a whole is preempted by the Federal Meat Inspection Act. An AMI press release notes, “on some occasions all species can become injured even until the last minutes before processing, but an injury like a broken ankle does not automatically make livestock unfit for consumption.” The California law (A.B. 2098), effective January 1, 2009, amended the state penal code by proscribing any slaughterhouse use of…
The Ninth Circuit Court of Appeals has denied the request by Gerber Products Co. to rehear the court’s April 2008 decision overturning the dismissal of putative class claims that the company’s Fruit Juice Snacks® packaging misled consumers. Williams v. Gerber Prods. Co., No. 06-55921 (9th Cir., amended opinion filed December 22, 2008). A detailed summary of the court’s April ruling appears in issue 258 of this Update. In its amended opinion, the court eliminated one sentence and reorganized two other sentences, but did not otherwise change its ruling that a detailed ingredients list in small type cannot shield a food manufacturer from liability for claims that its packaging misrepresents the quality of the product. “Instead, reasonable consumers expect that the ingredient list contains more detailed information about the product that confirms other representations on the packaging.” The product at issue, intended for toddlers, is sold in a package with images of…
A New Jersey resident has filed a putative class action lawsuit in federal court against Perdue Farms, Inc., alleging that the company is forcing consumers to subsidize the company’s costs of disposing of extra giblet parts by “a secret practice” of inserting them into whole chickens sold by the pound to retail customers. Marin v. Perdue Farms, Inc., No. 08-001 (D.N.J., filed December 17, 2008). The plaintiff seeks relief on behalf of a “(b)(2) Injunctive Relief Class” consisting of “All persons who purchased Perdue whole chicken at retail” and a “(b)(3) Multi-State Sub-Class” consisting of those who purchased whole chickens at retail “in the states of New Jersey, California, Florida, Maryland, Michigan, Missouri, New York, North Carolina, Ohio, and Washington.” The complaint alleges violations of consumer protection acts and unjust enrichment, and seeks “a declaration that “only the proportional amount of giblets are to be packaged in a whole chicken,”…
Del Monte Fresh Produce N.A., Inc. has sued the Food and Drug Administration (FDA), seeking a declaration that the agency has “engaged in a pattern or practice that constitutes agency action unlawfully withheld or unreasonably delayed” in connection with several cantaloupe shipments from Guatemala. Del Monte Fresh Produce N.A., Inc. v. U.S., No. 08-02161 (D.D.C., filed December 11, 1008). According to the complaint, the FDA denied release of the shipments until it completed testing for salmonella. The FDA has purportedly failed to respond to company requests for expedited testing and has yet to release the fruit, which is “overripening” and will cost the company more than $4.5 million in losses. A 10-day hold in 2007 allegedly cost the company almost $1 million. Del Monte claims that independent tests have failed to show that the shipments are infected with salmonella and contends that it “has never had a positive test for salmonella…
Plaintiffs in multidistrict litigation against Aurora Dairy Corp. over claims that its “organic” milk products do not meet federal certification requirements have reportedly filed an unopposed notice of voluntary dismissal requesting that the court dismiss Whole Foods Market Group, Inc. from the case without prejudice. In re: Aurora Dairy Corp. Organic Milk Mktg. & Sales Practices Litig., MDL No. 08-1907 (E.D. Mo., motion filed December 13, 2008). While Whole Foods apparently did not sell Aurora’s organic milk, the company was named as successor-in-interest to Wild Oats, Inc., the chain acquired by Whole Foods in August 2007 and alleged to have sold the products. Whole Foods has reportedly argued that Wild Oats retained its assets and liabilities after the merger and has agreed to provide plaintiffs with discovery on that issue. According to plaintiffs’ counsel, “If, after that discovery, we agree with your analysis, we will move the court to strike Whole…
A multidistrict litigation court (MDL) in New York has dismissed putative class claims filed against PepsiCo., Inc. for allegedly misrepresenting the source of its Aquafina® bottled water, “by using a label designed to create the impression that the water came from a mountain source and failing to inform consumers that the true source . . . was public drinking supplies commonly known as ‘tap water.’” In re: PepsiCo., Inc. Bottled Water Mktg. & Sales Practices Litig., MDL No. 1903 (S.D.N.Y., decided December 5, 2008). The court determined that plaintiffs’ state-law unfair and deceptive trade practices claims were expressly preempted under the Food, Drug, and Cosmetic Act (FDCA). According to the court, “the FDCA’s statutory framework and regulatory history . . . reveal that the FDA specifically addressed the disclosure of source information and determined, in its expert opinion, that representations of source are immaterial in the context of purified water.”…
Whole Foods Market, Inc., concluding that it cannot get a fair hearing before the Federal Trade Commission (FTC) in proceedings over the competitive effect of its merger with Wild Oats Markets, Inc., has filed a lawsuit in federal court seeking to terminate the proceedings as fundamentally flawed under the Due Process Clause. Whole Foods Market, Inc. v. FTC, No. 08-02121 (D.D.C., filed December 8, 2008). The FTC lifted a stay on its administrative proceedings shortly after a federal appeals court, reversing a district court ruling denying the FTC’s request to stop the merger, ruled that the commission could proceed with its preliminary-injunction proceeding in the courts. The appeals court remanded the case for the district court to consider whether the equities favor the FTC now that the merger has taken place and Whole Foods has closed or sold a number of Wild Oats stores. Among other matters, Whole Foods claims that…
The federal government has sued a California dairy that ships raw milk to other states, claiming that the company falsely labels its products as “pet food” to exploit a purported loophole in the law about raw milk distributed in interstate commerce and makes claims that its products can treat or prevent a host of diseases without Food and Drug Administration (FDA) approval. U.S. v. Organic Pastures Dairy Co. LLC, No. 08-00692 (E.D. Cal., filed November 20, 2008). The complaint requests that the dairy be permanently enjoined from shipping (i) products across state lines whether labeled as “for human consumption or pet food” and (ii) “products with labeling that makes them drugs” under federal law. According to the complaint, the FDA issued the defendants a warning letter in February 2005, stating that distribution of raw milk in interstate commerce violates the law and that failure to comply could lead to product…
