The Organic Consumers Association (OCA) has filed lawsuits against The Hain Celestial Group, Inc. and The Honest Co., Inc. alleging the companies’ “organic” infant formula products contain multiple substances prohibited for use in organic food by the U.S. Department of Agriculture (USDA). Organic Consumers Assoc. v. Hain Celestial Grp., Inc., No. 16-2533 (D.C. Super. Ct., filed April 5, 2016); Organic Consumers Assoc. v. Honest Co., Inc., No. SC125655 (Cal. Super. Ct., Los Angeles Cty., filed April 6, 2016). The lawsuit against Hain Celestial challenges the label claims of its Earth’s Best products, which the complaint argues are all labeled organic despite none meeting federal organic regulations. “Behind the picturesque red barn of the Earth’s Best logo displayed on each of the Falsely Labeled Products lies a chemical soup of synthetic, toxic, and hazardous ingredients,” the complaint argues. “For example, of the 48 ingredients in Earth’s Best Organic Infant Formula, more than…
Category Archives Litigation
A California federal court has dismissed a lawsuit alleging Kraft Heinz Food Co. mislabels its Heinz sauces as manufactured in the United States despite containing ingredients sourced outside the country, including turmeric, tamarind extract and jalapenos. Alaei v. Kraft Heinz Food Co., No 15-2961 (S.D. Cal., order entered April 22). The complaint failed to meet the heightened pleading standards associated with fraud claims, the court found, in part because she did not allege that the Heinz 57® sauce she bought contained any specific ingredients of foreign origin. Further, she could not have standing to assert misrepresentation claims against products she did not purchase without arguing the other sauces were substantially similar to Heinz 57®. Accordingly, the court granted Kraft’s motion to dismiss but allowed the plaintiff leave to amend. Additional information on the complaint appears in Issue 589 of this Update. Issue 602
A New York federal court has rejected Chobani, LLC’s motion for reconsideration of a preliminary injunction preventing the company from claiming in its advertising that competitor Dannon Co.’s yogurt products contain chlorine and are thereby unhealthy, unsafe and inferior to Chobani yogurt. Chobani, LLC v. Dannon Co., Inc., No. 16-0030 (N.D.N.Y., order entered April 22, 2016). Chobani’s marketing campaign displayed an image of a swimming pool—which is cleaned with calcium hypochlorite, a substance colloquially referred to as “chlorine”—while asserting that Dannon Light & Fit® yogurt contained chlorine, one of four chemical elements that constitute sweetener sucralose. Additional details about the complaint appear in Issue 590 of this Update. According to the court, Chobani argued that the “limitations place it at a competitive disadvantage because it completely precludes usage of the phrase ‘no bad stuff’ in relation to Dannon products regardless of whether or not a safety message is at issue.…
Public-interest group Cornucopia Institute has filed a lawsuit against Tom Vilsack in his capacity as Secretary of Agriculture alleging that he and the U.S. Department of Agriculture (USDA) violated the Organic Foods Production Act of 1990 by appointing “unqualified individuals” to the National Organic Standards Board (NOSB), which develops a list of synthetic substances allowed in the production of organic food, the National List of Allowed and Prohibited Substances. Cornucopia Inst. v. Vilsack, No. 16-0246 (W.D. Wis., filed April 18, 2016). Federal law requires the composition of the NOSB to be “balanced and independent,” Cornucopia argues, but USDA “inappropriately influenced” the board in a number of ways, including (i) disbanding its Policy Development Subcommittee, (ii) allowing the self-appointment of the board’s co-chairperson, and (iii) removing the board’s ability to set its own work plan. “USDA’s unlawful meddling with the composition and rules governing the NOSB has created a NOSB hostile…
A Florida federal court has denied Chipotle’s motion to dismiss a putative class action alleging the company misrepresents its food as free of genetically modified organisms (GMOs) despite selling meat produced from animals fed GMOs. Reilly v. Chipotle Mexican Grill, Inc., No. 15-23425 (S.D. Fla., order entered April 20, 2016). Chipotle argued that the plaintiff had no standing to sue because she did not specify which products she purchased; the court found she had sufficiently pleaded her claims to support standing for her consumer-protection claims, but not her request for an injunction. Chipotle also challenged the plaintiff’s understanding of “non-GMO” as “nonsensical,” but the “reasonableness of her definition, upon which her interpretation of Chipotle’s advertisements is based, is a question better decided upon examination of the evidence,” the court held. Accordingly, it granted Chipotle’s motion to dismiss the request for injunctive relief but denied it as to the rest of…
An Oregon federal court has dismissed a lawsuit alleging Gerber’s Graduates® Puffs is mislabeled because its packaging displays fruits and vegetables not contained in the product. Henry v. Gerber Prods. Co., No. 15-2201 (D. Ore., order entered April 18, 2016). The court first denied the plaintiff’s request to remand the case to state court, then turned to Gerber’s motion to dismiss the claims based on preemption by the federal Food, Drug, and Cosmetic Act. Gerber argued that U.S. Food and Drug Administration (FDA) regulations allow the company to provide visual depictions of the product’s “‛characterizing flavor,’ even if the product does not actually contain any of the depicted fruit, or indeed any fruit at all.” The court agreed, finding that the law is “clear,” even if the “wisdom of the FDA’s regulations on this topic is a different question for a different day.” The court dismissed the case but granted…
The Seventh Circuit Court of Appeals has revived a data breach lawsuit against P.F. Chang’s China Bistro, Inc., finding that the two plaintiffs have standing to sue despite eating at a restaurant apparently not linked to the breach. Lewert v. P.F. Chang’s China Bistro, Inc., No. 14-3700 (7th Cir., order entered April 14, 2016). Additional details about the breach appear in Issue 526 of this Update. The plaintiffs ate at an Illinois location of P.F. Chang’s two months before the company announced its payment system had been hacked, revealing personal information and credit card numbers. One plaintiff noticed fraudulent charges on his card and purchased credit-monitoring services, while the other alleged that he spent time and effort monitoring his card statements and credit report. Each brought separate lawsuits, which were later consolidated then dismissed for lack of standing. Following its announcement about the data breach, P.F. Chang’s identified 33 restaurants…
France’s highest administrative court, the Conseil d’État, has reportedly invalidated a 2014 decree banning Monsanto’s MON810 maize, a genetically modified organism (GMO), because the decree did not demonstrate that the maize would cause serious health or environmental risks, a standard determined by EU rules. The ruling will not allow GMO maize to be cultivated in the country; in 2015, an EU directive allowed member nations to prohibit GMO crops, and France passed legislation complying with the directive’s standards. The later law bans cultivation of all GMO maize in France. The French maize seed federation sought to appeal the earlier rule despite the symbolic nature of the action to argue that the ban was not based on sound science. “It was more a matter of principle that we conduct this appeal to show there was no scientific basis to the ban,” the organization’s managing director told Reuters. “In concrete terms, it…
Ganeden Biotech Inc. has filed a lawsuit against American Brewing Co., Inc. and its 2015 acquisition, B&R Liquid Adventure, alleging the companies infringe its patents on a particular strain of probiotic bacteria through the marketing and sale of their búcha® beverage. Ganeden Biotech, Inc. v. Am. Brewing Co., Inc., No. 16-0876 (N.D. Ohio, filed April 13, 2016). Ganeden asserts that it holds a patent on a specific GBI-30 strain of Bacillus coagulans as used in tea and another patent on the strain as used in all other products. B&R began selling búcha® in 2013 and lists the GBI-30 strain as an ingredient, according to the complaint. “Because Ganeden holds a patent on GBI-30 and is the legitimate source of GBI-30, Ganeden believes that Defendants’ products likely contained Bacillus coagulans (which Defendants could have obtained elsewhere) but not always the GBI-30 strain as labeled,” the biotech company argues. For allegations of patent infringement and unfair…
A consumer has filed a putative class action alleging Outernational Brands, Inc. mislabels its Vivaloe aloe-vera beverages as “All Natural” and preservative-free even though the products contain citric acid. Chen v. Outernational Brands, Inc., No. 16-1634 (E.D.N.Y., filed April 4, 2016). “The term ‘All Natural’ only applies to those products that contain no non-natural or synthetic ingredients and consist entirely of ingredients that are only minimally processed,” the complaint asserts. The plaintiff argues that the presence of citric acid, “which is not extracted from citric fruits but industrially synthesized via complex chemical synthetic routes and thus cannot be considered ‘minimally processed,’” precludes Outernational from labeling Vivaloe as “All Natural” or free of preservatives. The complaint admits the U.S. Food and Drug Administration has not defined “natural,” but argues “there is no reasonable definition of ‘All Natural’ that includes ingredients that, even if sourced from ‘nature,’ are subjected to extensive transformative…
