A plaintiff has filed a putative class action alleging Iberia Foods Corp. misleads consumers by selling its oil as Extra Virgin Olive Oil despite containing 80 percent sunflower oil. Okoe v. Iberia Foods Corp., No. 18-9161 (S.D.N.Y., filed October 5, 2018). The front label of the product, the complaint alleges, features a dark green background with the phrase "Sunflower Oil &" in black text and "Extra Virgin Olive Oil" in gold, allegedly causing the sunflower oil disclosure to be "barely distinguishable from the background" and "readily overlooked by consumers." The plaintiff cites a number of sources—including the BBC, Quora, activationproducts.com and finecooking.com—to assert that sunflower oil is less desirable to consumers than extra virgin olive oil because of the purported health benefits of the latter. For allegations of fraud and violations of New York consumer-protection statutes, the plaintiff seeks class certification, damages, an injunction and attorney's fees.
Category Archives Litigation
Two plaintiffs have filed a putative class action alleging Post Consumer Brands sweetens its Honey Bunches of Oats cereals with "sugar, corn syrup, and other processed substances, and [they] contain only miniscule amounts of honey." Lima v. Post Consumer Brands LLC, No. 18-12100 (D. Mass., filed October 5, 2018). The complaint lists the alleged risks of consuming sugar to argue that Post intentionally misleads consumers into believing that Honey Bunches of Oats is healthful by implying that it is sweetened only or primarily by honey. "A product branded 'Honey Bunches of Oats' that pictorially conveys cereal being covered with honey and a bee in flight hardly means to a reasonable consumer that the product is mostly sweetened with sugar or other processed substances or, moreover, that it contains only a miniscule amount of honey," the complaint asserts. The plaintiff alleges violations of consumer-protection statutes in 35 states and seeks damages…
The U.S. Court of Appeals for the Seventh Circuit has upheld a Wisconsin law requiring butter sold within the state to bear a grade issued by a Wisconsin-licensed butter grader or the U.S. Food and Drug Administration. Minerva Dairy Inc. v. Harsdorf, No. 18-1520 (7th Cir., entered October 3, 2018). The Ohio dairy challenging the law alleged it violated the Due Process Clause, the Equal Protection Clause and the dormant Commerce Clause of the U.S. Constitution, but a lower court granted summary judgment in favor of Wisconsin. The appeals court first found that the statute does not violate substantive due process or equal protection because the law is “rationally related to at least two conceivable state interests”—consumer protection and promotion of commerce. Turning to the dormant Commerce Clause allegation, the court found that the law does not have a discriminatory effect on interstate commerce. The dairy argued that requiring out-of-state…
The Federal Circuit has affirmed a Trademark Trial and Appeal Board (TTAB) decision refusing to grant a trademark to Real Foods Pty Ltd. for “Corn Thins” and “Rice Thins,” finding the terms to be “merely descriptive.” Real Foods Pty Ltd. v. Frito-Lay N. Am. Inc., Nos. 17-1959, 17-2009 (Fed. Cir., entered October 4, 2018). Frito-Lay North America opposed Real Foods’ trademark application, but Real Foods argued both that the terms were not descriptive and that even if they were descriptive, they had acquired distinctiveness. The Federal Circuit found significant evidence to support TTAB’s conclusion that the terms are descriptive, noting that the first part of the terms is the primary ingredient and the second is the shape. “The composite marks are ‘merely descriptive’ because they ‘immediately convey[] knowledge of a quality or characteristic of the product[s],’ specifically the products’ main ingredients and thickness,” the court held. The court also found…
A consumer has filed a putative class action alleging that several ingredients in LaCroix sparkling water, which is marketed as “always 100% natural,” are “non-natural flavorings and synthetic compounds.” Rice v. Nat’l Beverage Corp., No. 2018-CH-12302 (Ill. Cir. Ct., Cook Cty., filed October 1, 2018). The plaintiff alleges that the ingredients are synthetic and therefore cause consumers harm. “For instance, limonene causes kidney toxicity and tumors, linalool is used as a cockroach insecticide; and linalool propionate is used to treat cancer,” the complaint asserts. The complaint garnered significant media coverage, including in CBS News, Los Angeles Times and USA Today. A nutritional scientist reportedly told CBS News, “These compounds are found in nature, mostly in fruit such as oranges, limes, strawberries, pineapples, bananas….so we consume these compounds every day if we eat any kind of fruit.” In addition, Snopes noted, “The chemicals identified in the lawsuit [] are both safe…
A consumer has filed a lawsuit alleging that he contracted Salmonella from beef supplied to a restaurant by JBS Tolleson Inc. Rozich v. JBS Tolleson Inc., No. 18-1929 (D. Nev., filed October 8, 2018). The plaintiff alleges his infection stemmed from an outbreak of Salmonella that resulted in JBS recalling nearly seven million pounds of beef on October 4, 2018. The complaint cites a July 2017 notice from the U.S. Department of Agriculture’s Food Safety and Inspection Service purportedly alleging a JBS facility president enabled “‘egregious’ and ‘inhumane’ practices with livestock.” The plaintiff seeks damages and costs for allegations of strict product liability, negligence and breach of warranty.
Three consumers have filed a putative class action alleging that Arizona Beverage Co.’s teas, energy drinks and fruit juices are misleadingly marketed as containing “no preservatives” despite containing citric and ascorbic acids. Kubilius v. Arizona Beverage Co., No. 18-9075 (S.D.N.Y., filed October 3, 2018). The plaintiffs assert that they paid a premium for the products believing them to be preservative-free but later discovered that the products contain citric and ascorbic acid, which allegedly “serve as preservatives by functioning as sequestrants, removing compounds and elements from their environment so as to slow the degradation of food and beverages.” The complaint also cites a declaration from a food scientist who asserts that “while citric acid and ascorbic acid can also be employed by a manufacturer that intends to impart taste, a greater quantity of these substances is required to impart taste than to preserve foods and beverages. … Even if imparting taste…
A California federal court has granted class certification to a group of consumers alleging that Chipotle Mexican Grill Inc. misrepresented its food as made without genetically modified organisms (GMOs). Schneider v. Chipotle Mexican Grill Inc., No. 16-2200 (N.D. Cal., entered September 29, 2018). Chipotle has faced a number of similar suits, but other iterations have been dismissed. The court found that the plaintiffs met each of the requirements for class certification, rejecting Chipotle's argument that each class member may have seen significantly different marketing messages. "Plaintiffs rely primarily on the advertisements and statements issued and installed in all of Chipotle's stores," the court found, noting that three advertisements supported the plaintiffs' claims. "Based on Plaintiffs’ theory that 'reasonable consumers understood Non-GMO to include meat and dairy ingredients that were not sourced from animals fed GM feed,' [] the Court finds that the representations made on these three in-store signs are…
Consumers have filed lawsuits alleging that companies misrepresent their products as "natural" because they contain d-malic acid. One lawsuit targets Ocean Spray Cranberries Inc., alleging it mislabels its juices as free from artificial flavors despite containing d-malic acid rather than the naturally occurring l-malic acid. Froio v. Ocean Spray Cranberries Inc., No. 18-12005 (D. Mass., filed September 24, 2018). The complaint further alleges that the juices contain furmaric acid, which is "manufactured from petrochemical feedstock, either benzene or butane, through chemical transformation to maleic anhydride." The plaintiffs argue that a "reasonable consumer understands Defendant's claims that the Products contain no 'artificial' flavoring to mean that the flavoring is derived from a natural source." For allegations of fraud, negligent misrepresentation, unjust enrichment and violations of New York and Massachusetts consumer-protection statutes, the plaintiffs seek class certification, damages, injunctive relief, restitution and attorney's fees. Two consumers have alleged that Neurobrands LLC also…
A New York federal court has dismissed allegations from a putative class action arguing that Pret A Manger Ltd. sold sandwich wraps with excess slack fill between the wrap's halves. Lau v. Pret A Manger (USA) Ltd., No. 17-5775 (S.D.N.Y., entered September 28, 2018). The court held that the plaintiffs lacked standing for an injunction despite their argument that they would consider purchasing the wraps in the future, finding "no sufficient basis for inferring that plaintiffs would ever seek to purchase a Pret wrap again as long as the status quo persists." The court also disagreed with the plaintiffs' argument that the slack fill in the wraps amounted to an intent to defraud consumers. "Specifically, plaintiffs state that less than half, or 45 percent, or Pret wraps surveyed contained slack-fill," the court noted. "Drawing all reasonable inferences in plaintiffs' favor, the Court finds that the facts are insufficient to nudge…
