A World Trade Organization (WTO) panel has determined that the United States has violated its trade obligations by refusing to allow Chinese chicken parts into the U.S. market, an action that was apparently taken in a 2009 federal spending bill that denied the use of any U.S. Department of Agriculture funding to establish or implement any measure that would allow the importation. The law extended a five-year U.S. ban on Chinese chicken that was imposed during a bird flu outbreak. While the WTO can sanction countries that violate trade rules, this could take several years because the United States has the option to appeal the verdict. According to a news source, the Office of the U.S. Trade Representative has indicated that the restrictions were temporary and are due to expire soon. See USA Today, September 29, 2010.
Category Archives Litigation
Two days after the Center for Science in the Public Interest (CSPI) announced that Ben & Jerry’s had agreed to phase out claims that its ice creams and frozen yogurts were “All Natural,” when some product ingredients are processed, a putative class action was filed in a California federal court against the company seeking money damages for false advertising and an injunction to stop the company from making such claims. Astiana v. Ben & Jerry’s Homemade, Inc., No. 10-4387 (N.D. Cal., filed September 29, 2010). In August 2010, CSPI claimed that 48 of the company’s products were mislabeled because they contained unnatural ingredients, and the watchdog threatened to bring its concerns to the Food and Drug Administration (FDA). More details about CPSI’s action appear in Issue 360 of this Update. On September 27, CSPI praised the company for amicably resolving the dispute; the company’s response indicated that it would remove the…
A federal court in California has determined that an agency decision to allow planting of genetically modified (GM) sugar beet stecklings (seedlings) without conducting an environmental assessment likely violated federal law and has ordered the parties to file briefs as to the appropriate remedy now that most of the stecklings authorized have been planted. Ctr. for Food Safety v. Vilsack, No. 10-04038 (N.D. Cal., decided September 28, 2010). Additional information about the lawsuit’s challenge to action taken by the U.S. Department of Agriculture’s Animal and Plant Health Inspection Service (APHIS) appear in Issue 363 of this Update. The court first addressed whether seed companies could intervene in the matter and ruled that they could do so as to the remedies, but not as to the merits, that is, whether APHIS violated federal environmental laws including the National Environmental Policy Act (NEPA) by issuing the permits without conducting an environmental review. The…
The Sixth Circuit Court of Appeals has determined that parts of an Ohio law regulating the use of labeling on dairy products from cows not treated with growth hormones violate the First Amendment. Int’l Dairy Foods Ass’n v. Boggs, Nos. 09-3515/3526 (6th Cir., decided September 30, 2010). The court also upheld other provisions and remanded parts of the rule relating to antibiotics and pesticides for further proceedings. Thus, the court overturned, in part, a district court determination that upheld most of the rule’s provisions. The Ohio Director of Agriculture adopted a rule in May 2008 that (i) prohibited dairy producers from claiming their milk was hormone-free (a composition claim) and (ii) placed stringent restrictions on the use of the claim “this milk is from cows not supplemented with rbST [recombinant bovine somatotropin or recombinant bovine growth hormone (rbGH)]” (a production claim). Among other matters, the latter require verification, and contiguous…
After a Russian court approved the transfer to a housing development foundation of land outside St. Petersburg where more than 6,000 varieties of fruits and berries are grown, scientists fearing the loss of a major seed bank were reportedly heartened to learn that President Dmitry Medvedev has taken an interest in the matter and ordered a review of the decision. An earlier report about the court ruling appears in Issue 360 of this Update. The foundation has also reportedly postponed a planned auction of part of the land and will have an independent expert audit conducted to assess the uniqueness of the plants growing there and how much acreage is involved. Interested parties are apparently seeking a compromise; the auction may be delayed for five to seven years to allow the plant collection to be relocated. See Science, August 20, 2010; Sciencemag.org and Global Crop Diversity Trust, September 10, 2010.
A Kentucky man accused of murdering his wife reportedly notified the court that he would defend himself by claiming that a high caffeine intake, from soft drinks, energy drinks and diet pills, made him temporarily insane and unable to form the requisite criminal intent to kill his wife. During opening statements, however, his attorney apparently stated that Woody Will Smith did not murder his wife, but provided a false confession to police because of high stress from large amounts of caffeine and a lack of sleep. According to news sources, the caffeine defense has been used before and was successful in the case of an Idaho man who allegedly injured two pedestrians with a car. A judge reportedly concluded that this man could not form the mental intent to commit the crime after consuming two large cups of coffee following a restless night and weeks of hard work. Experts have…
Snapple Beverage Corp. has requested that a federal district court dismiss the individual claims remaining in litigation alleging that the company misled consumers by labeling beverages containing high-fructose corn syrup (HFCS) as “all natural.” Weiner v. Snapple Beverage Corp., No. 07-8742 (S.D.N.Y., motion filed September 17, 2010). In August 2010, the court issued an order denying plaintiffs’ request to certify a statewide class of claimants. Additional information about that order appears in Issue 363 of this Update. According to the defendant’s memorandum of law supporting its motion, while the plaintiffs “seek recovery of an alleged ‘price premium’” that they paid for the products, they (i) do not know how much they actually paid for Snapple, (ii) made no effort to determine how comparable products were priced when they purchased Snapple beverages, (iii) lack any receipt to document a Snapple purchase, (iv) “cannot recall with any certainty the price they paid…
A putative class action has apparently been filed in a federal court in Illinois by six named plaintiffs who allegedly became ill after consuming Salmonella-tainted eggs from Wright County Egg and Hillandale Farms in Iowa. The plaintiffs’ attorney has reportedly been given permission to inspect the farms for evidence. According to a news source, the plaintiffs allege that the companies’ negligence is responsible for the outbreak and suggest that more than the known 1,500 individuals sickened by the contaminated eggs could be class members. In a related development, news sources report that Wright County Egg had dozens of positive results for Salmonella from swabs taken on conveyor belts and in other facility areas as early as 2008 and failed to notify local, state or federal officials. Animal safety experts reportedly called such contamination “surprising” and suggested that repeated positives indicate the company was not “getting to the root cause of what the…
POM Wonderful LLC has filed a complaint for declaratory relief in a D.C. federal court against the Federal Trade Commission (FTC), alleging that it (i) exceeded its authority in requiring Food and Drug Administration (FDA) preapproval of health-related claims on food products, that is, those claims stating that a product treats, mitigates or prevents disease, and substantiation of non-disease-related claims with two “well-controlled” clinical studies; (ii) violated advertisers’ First and Fifth Amendment rights by requiring compliance with these new standards; and (iii) failed to comply with notice and comment rulemaking procedures in establishing the standards. POM Wonderful LLC v. FTC, No. 10-1539 (D.D.C., filed September 13, 2010). According to the complaint, FTC has advised POM Wonderful that it must comply with standards recently announced in consent orders against other companies and now apparently applicable to the food and dietary supplement industry as a whole. Additional information about one of those orders…
A federal court in Illinois has dismissed claims that companies failing to disclose that the fiber in their snack-bar and yogurt products is “non-natural” chicory root-based inulin, which allegedly lacks the same health benefits as “natural” fiber, have violated state consumer fraud laws. Turek v. General Mills, Inc., No. 09-7038 (N.D. Ill., decided September 1, 2010). According to the court, the plaintiff’s claims are expressly preempted by the federal Nutritional Labeling and Education Act (NLEA) because they would impose requirements under state law that are not identical to federal law requirements. The products at issue are labeled with statements about the percent of daily fiber they contain or grams of fiber provided per serving. Discussing the application of preemption provisions in various federal laws, the court also sets out all of the federal regulations pertaining to fiber in foods. The court concludes, “plaintiff wants to change the labeling on defendants’…
