A New York appeals court has reportedly vacated a February 2016 order that stayed enforcement of New York City’s regulation requiring chain restaurants with more than 15 locations to post warning icons on menus next to items with more than 2,300 milligrams of sodium. The ruling allows enforcement to begin on June 6, 2016, with violators subject to $200 fines. The National Restaurant Association (NRA) won an emergency stay on February 29, one day before the regulation’s scheduled March 1 enforcement date. Details about the NRA’s lawsuit challenging the regulation appear in Issues 586, 595 and 596 of this Update. See Reuters, May 26, 2016. Issue 606
Category Archives State Courts
An Oregon state court has invalidated a local ban on cultivating genetically modified organisms (GMOs), holding that the ordinance contradicts state law preventing local anti-GMO rules. White v. Josephine Cty., No. 15-23592 (Ore. Cir. Ct., Josephine Cty., order entered May 16, 2016). The plaintiff challenged the law after he rented land within Josephine County then learned he could not grow his crops there under a May 2014 ordinance prohibiting GMO-crop cultivation. Intervenors in the case challenged the standing of the plaintiff, who described himself as a GMO sugar-beet farmer. According to the court, the intervenors argued that “the plaintiffs are posing as GMO farmers so that large chemical companies through them can attack the local ordinance.” The court disagreed, finding ample evidence to grant the plaintiff standing. Turning to the content of the ordinance, the court held that the state statute preempted the local law. “[T]he conflict could not be…
Consumers have filed a putative class action against Albertson’s Inc. and Safeway Inc. alleging the companies raise prices on meat during “buy one get one free” (BOGO) deals, resulting in consumers “actually paying for the meat that is sold as ‘free’ in these special sales.” Stewart v. Albertson’s Inc., No. 16-15125 (Ore. Cir. Ct., Multnomah Cty., filed May 4, 2016). The complaint asserts the stores rotate BOGO offers on a number of meat products, including pork chops, chicken breast and beef sirloin, but offer the products at lower prices when they are not on special. Further, the stores “sell the same meat products at regular [loyalty card] prices that are lower than the BOGO prices. When they do this, Defendants sometimes sell the same product under different names.” The plaintiffs offer an example: “Safeway sold boneless, skinless chicken breasts to [loyalty card] members for $1.99 per pound. At the same…
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…
A New York state appellate court has affirmed a lower court’s ruling dismissing a lawsuit against a local Fox TV station that investigated and reported on the allegedly false health claims of D’Lites ice cream in two stores. Prince v. Fox Television Stations Inc., No. 107129/2011 (N.Y. App. Div., 1st Dept., order entered March 8, 2016). The eight-minute “Shame Shame Shame” report informed viewers that the nutritional information advertised for a small serving did not correlate to the nutritional information of the ice cream served by two New Jersey stores; the owner of a D’Lites store—not one involved in the report—sued the station for libel. A lower court then dismissed the lawsuit; details appear in Issue 524 of this Update. “To the extent that there were purported discrepancies in the measurements of sugar and carbohydrates in the test results of the samples sold in stores, plaintiff does not dispute that…
The Wisconsin Supreme Court has ruled that a class of manufacturing-plant workers at Hormel Food Corp. should be paid for the time they need to change into and out of their required clothes and equipment. United Food & Commercial Workers Union, Local 1473 v. Hormel Food. Corp., No. 2014-AP-1880 (Wis., order entered March 1, 2016). The court found that under Wisconsin regulations, Hormel must compensate its employees for 5.7 minutes per day. The ruling affirms a circuit court decision finding that “the employees’ donning and doffing clothing and equipment at the beginning and end of the day brought Hormel into compliance with federal food and safety regulations and was integral and indispensable to sanitation and safety in the employees’ principal work activities, namely food production.” Issue 596
The day before the rule was set to take effect on March 1, 2016, a New York state appeals court reportedly granted an emergency stay on enforcement of a municipal regulation requiring chain restaurants to feature salt-warning icons on menus next to items containing 2,300 milligrams or more of sodium. A justice in the Appellate Division of the New York Supreme Court granted the emergency measure, and a panel from that court will next decide whether to grant a preliminary injunction on enforcement followed by a full appeal of the case. See Bloomberg Business, February 29, 2016. Issue 596
A consumer has filed a putative class action against Carrington Tea Co. alleging the company advertises its coconut oil as “a healthy alternative to butter and various cooking oils, despite that coconut oil is actually inherently unhealthy, and a less healthy option to these alternatives.” Boulton v. Carrington Tea Co., No. B609360 (Cal. Super. Ct., Los Angeles Cty., filed February 4, 2016). Coconut oil “is approximately 90 percent saturated fat” and “increases the risk of [coronary heart disease] and stroke” as well as other negative health effects, the complaint asserts. Despite these effects, the plaintiff argues, Carrington markets its coconut oil as healthy, and further, “Carrington’s labeling claims are designed to conceal or distract consumers from noticing that its Carrington Farms coconut oils are pure fat” by including the phrase “Healthy Foods for a Healthy Soul” and claiming that “Carrington Farm’s cold-pressed organic extra virgin coconut oil is the most…
A California state court has reportedly rejected Pabst Brewing Co.’s attempt to dismiss a lawsuit brought by Snoop Dogg asserting the rapper is entitled to a portion of the proceeds obtained through the $700 million sale of the company in 2014. Spanky’s Clothing Inc. v. Pabst Brewing Co. LLC, No. BC584365 (Cal. Super. Ct., Los Angeles Cnty., rulings issued February 24, 2016). In the June 2015 complaint, the rapper argued that through a phantom equity clause in his three-year deal to endorse Blast by Colt 45®, a line of fruit-flavored alcohol beverages, he is owed part of the sale price realized by Pabst stockholders. The parties reportedly disputed over whether the court should take judicial notice of the securities sale agreement, but the court found that considering it was inappropriate at this stage of the litigation and denied the motions to dismiss the case. See Law360, February 24, 2016. …
A New York state court has reportedly refused to grant the National Restaurant Association’s request for a preliminary injunction to stall the enforcement of New York City’s new requirement that chain restaurants label menu items containing 2,300 mg of salt or more, which is set to take effect March 1, 2016. Nat’l Restaurant Assoc. v. New York City Dept. of Health, No. 654024/2015 (N.Y. Super. Ct., New York Cty., order entered February 24, 2016). During the hearing, the court reportedly distinguished the rule from a ban on the ingredient, noting, “It’s not a ban. It’s information. It’s a warning.” Under the rule, chain restaurants must display a logo of a triangle with the image of a salt shaker next to applicable menu items or risk a $200 fine for each infraction. See Bloomberg, February 24, 2016. Issue 595
