The Court of Justice of the European Union (ECJ) has issued a ruling that may result in price-fixing fines of up to $5 million for 18 endive producers alleged to have created a “complex and continuous cartel” intended to enforce minimum producer prices. President of the Autorité de la concurrence v. Assoc. des producteurs vendeurs d’endives, No. C-671/15 (E.C.R., entered November 14, 2017). The dispute began in 2007 after French officials for consumer affairs and fraud prevention referred an investigation of industry practices to the French Competition Authority (FCA). After an appeals court reversal holding that the producers had not engaged in price-fixing, FCA brought an appeal in cassation; that court stayed proceedings and asked the ECJ for a preliminary ruling on the matter. ECJ held that practices related to the collective fixing of prices, control of products or exchanges of strategic trade information violate the Treaty on the Functioning…
Category Archives Litigation
A putative class action filed in New York has alleged that although the marketing for Simply Potatoes Mashed Potatoes features claims such as “Made with REAL Butter,” the product contains margarine made from genetically modified organisms (GMOs). Berger v. MFI Holdings Corp., 17-6728 (E.D.N.Y., filed November 17, 2017). “Despite the centrality of butter to [the product's] marketing and labeling,” the complaint asserts, “it also contains margarine as indicated on the ingredient list.” The plaintiff also alleges the product is sold at a premium price compared to similar refrigerated potato products. Claiming violations of New York consumer-protection laws and breach of implied warranty of merchantability, the plaintiff seeks class certification, damages, injunctive relief and attorney’s fees.
Sazerac Brands has filed a notice of opposition to ROSC Global's application to trademark “St. Paddy’s Brigade” for agave liquor, arguing that consumers are likely to confuse the mark with Sazerac’s “Paddy” line of Irish whiskies. Sazerac Brands LLC v. ROSC Global, LLC, No. 91237863 (T.T.A.B., filed November 16, 2017). ROSC Global applied for the mark in May 2017, while Sazerac asserts the company and its predecessors-in-interest have used the “Paddy” marks for alcoholic beverages since 1927.
A federal court in New York has given final approval to the settlement of multidistrict litigation that alleged Frito-Lay North America, Inc. deceptively labeled and marketed its chip and dip products as “Made with All Natural Ingredients” when the products contained genetically modified ingredients. Frito-Lay N. Am., Inc., “All Natural” Litig., No. 12-MD-2413 (E.D.N.Y., entered November 14, 2017). Frito-Lay has agreed to modify its product labeling. While the class will not receive damages apart from $17,500 to class representatives, plaintiff's counsel will receive $1.9 million plus reimbursement of expenses up to $200,000.
A consumer has filed a lawsuit alleging that she became ill after eating a chicken salad containing “hard, gray-colored granules” with a “foul odor and taste” at a location of Bojangles Famous Chicken 'n Biscuits. Green v. Bojangles Restaurants, Inc., No. 17-2936 (D.S.C., removed to federal court October 30, 2017). The plaintiff asserts that she ordered a Roasted Chicken Bites salad that contained the granules, which she ate because she purportedly thought they were pieces of feta cheese. The plaintiff contends that she immediately became ill and vomited at the restaurant, while her husband took the granules to the restaurant owner, who apparently indicated he would have them tested at a laboratory. The plaintiff also argues that after the incident, she developed “nodules or growths” in her throat that remained for about 18 months. Claiming strict liability, breach of implied warranty, negligence, negligence per se and loss of consortium, the plaintiff…
A consumer has filed a putative class action alleging Pure Brazilian's "cold-pressed" coconut water undergoes high-pressure processing that “reduces the biological, enzymatic and bacterial activity” of the water, allegedly amounting to false advertising and fraud. Khallili v. Pure Brazilian LLC, No. 17-6425 (E.D.N.Y., filed November 5, 2017). The complaint asserts that high-pressure processing not only changes the nature of the product but increases its shelf life; “highly perishable” warnings on the bottle mislead consumers into believing the coconut water is unprocessed by making it appear similar to competing products that have a shorter shelf life, the plaintiff argues. The complaint also alleges that the product is sold at a premium price compared to coconut waters made with similar high-pressure processing. Claiming violations of New York consumer-protection laws, false advertising, fraud, implied warranty of merchantability and unjust enrichment, the plaintiff seeks class certification, damages, injunctive relief and attorney’s fees.
Snyder’s-Lance, Inc. has filed a lawsuit in North Carolina federal court appealing a Trademark Trial and Appeal Board (TTAB) ruling that found the term “Pretzel Crisps” to be generic, arguing that TTAB “failed to consider all the evidence of the public’s perception of the Pretzel Crisps brand, despite clear direction from the Federal Circuit to do so.” Snyder’s-Lance, Inc. v. Frito-Lay N. Am., Inc., No. 17-0652 (W.D.N.C., filed November 6, 2017). TTAB initially deemed “pretzel crisps” generic after Frito-Lay opposed Snyder's-Lance’s application for a trademark; that decision was vacated by the Federal Circuit and remanded for reconsideration. Snyder's-Lance argues that during seven years of litigation, its Pretzel Crisps brand has become a market leader and is now the “number one product in the entire ‘deli cracker’ section in which it principally competes." The complaint also asserts that “both Frito-Lay and the TTAB panel agreed that ‘pretzel crackers’ generically and appropriately…
A California federal court has affirmed the dismissal of copyright infringement claims for lack of personal jurisdiction, holding that “a theory of individualized targeting" will not support specific jurisdiction. Axiom Foods, Inc., v. Acerchem Int’l, Inc., No. 15-56450 (9th Cir., entered November 1, 2017). Axiom Foods, Inc., which supplies organic and “chemical-free” products to food and beverage companies, filed a lawsuit in California after Acerchem International’s United Kingdom subsidiary distributed a newsletter to clients that included Axiom’s “As Good As Whey” and “Non-GMO” logos. The lower court dismissed the case, finding that Acerchem UK maintains its principal place of business in the United Kingdom and “does not conduct business in the United States," adding that no more than 10 recipients of the newsletter were located in California. Considering the jurisdictional issue, the Ninth Circuit focused on whether Acerchem UK aimed its business activities at California. In addition to the 10 identified…
Forager Project faces a putative class action alleging that its "cold-pressed" juices undergo a second, high-pressure processing, allegedly amounting to misrepresentation on the product labeling. Berger v. Forager Project, LLC, No. 17-6302 (E.D.N.Y., filed October 28, 2017) The plaintiff asserts that after the juices are cold-pressed and bottled, Forager subjects the bottles to high-pressure treatment that reduces “the biological, enzymatic and bacterial activity which existed after cold-pressing to an extent that is material to reasonable consumers.” In addition, the plaintiff alleges that Forager does not disclose this second step on its labeling, misleading consumers who want cold-pressed juice because of its “greater integrity in composition than if it were made through a centrifugal machine.” The complaint further argues that the name “Forager Project” contributes to consumer deception because “[f]oraging has traditionally referred to the gathering of food from the natural, undisturbed environment.” Claiming violations of New York consumer-protection law, false advertising,…
Candy company Sugarfina has filed a lawsuit alleging that Sweitzer LLC copied its “innovative, distinctive, and elegant product and packaging” as well as its "types of candy" and “protectable names.” Sugarfina, Inc. v. Sweitzer LLC, No. 17-7950 (C.D. Cal., filed October 31, 2017). Sugarfina asserts that it has approximately 140 lines of candy, presented in “museum-quality Lucite that emphasizes the artisanal and rarefied quality of a gourmet small-portion tasting experience,” and that Sweitzer copied the “size, shape, color or color combinations, texture, graphics and sales techniques” in its candy packaging and store designs. Claiming trade-dress infringement under the Lanham Act, federal and common law trademark infringement, unfair business practices, patent and copyright infringement, Sugarfina seeks damages, corrective advertising, accounting, restitution and attorney’s fees. Sugarfina filed a similar infringement claim against Sweet Pete's in June 2017.
