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…
Category Archives Litigation
In late December 2008, Mexico banned imports of meat from 30 U.S. processing facilities, telling the USDA that sanitary issues were to blame, although some, including Senator Charles Grassley (R-Iowa), suggested that the move was in retaliation for the new country-of-origin labeling (COOL) rules that took effect September 30. Mexican officials denied any connection and reportedly lifted the embargo for 26 of the plants as of December 30. According to a news source, Mexico is the leading buyer of U.S. meat, and the suspension led to a sharp decline in cattle and hog futures at the Chicago Mercantile Exchange. U.S. and Mexican officials were reportedly scheduled to meet January 5, 2009, to discuss meat import issues. Meanwhile, Mexico has reportedly joined Canada before the World Trade Organization seeking consultations with the United States over the COOL regulations. The two countries are apparently most concerned about the impact on meat and livestock,…
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 Chinese court has reportedly refused to accept a lawsuit filed by dozens of families whose children were sickened or died from consuming infant formula contaminated with melamine. Apparently the first-known group lawsuit to arise in the wake of the scandal, the complaint sought nearly US$2 million from the state-owned Sanlu Group Co., the dairy company that allegedly produced the tainted products. According to a news source, Chinese courts often turn down group suits, preferring to deal with individual cases and avoid angering party officials. Some one dozen individual cases are currently pending in courts around the country, but they have not yet been accepted. A lawyer for the affected families reportedly indicated that the group lawsuit was ostensibly not accepted because government departments are still investigating. See Associated Press, December 8, 2008.
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 Canadian government has reportedly filed a complaint with the World Trade Organization (WTO), challenging the U.S. country-of-origin labeling (COOL) law. According to a news source, Canada alleges that COOL will impose unnecessary costs on meatpackers that use Canadian livestock and could lead to additional and more stringent labeling requirements in other countries. Canadian Trade Minister Stockwell Day was quoted as saying, “We believe that the country-of-origin legislation is creating undue trade restrictions to the detriment of Canadian exporters.” The complaint initiates a consultation period, which, if unsuccessful, could lead to resolution by a WTO dispute settlement panel. Canadian beef and pork producers recently called on the government to institute such action; further details about their concerns appear in issue 281 of this Update. See Meatingplace.com, December 2, 2008.
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…
