The Cornucopia Institute has called for action by the U.S. Department of Agriculture (USDA) and the Federal Trade Commission (FTC) to stop what it alleges is the misleading practice of companies using the word “organic” in their names while selling foods not certified organic. In its April 22, 2010, letter to the USDA’s deputy administrator, the institute contends that the agency has the authority “to take enforcement action against the misuse of the term ‘Organic’ in company names.” It specifically cites Oskri Organics, Organic Bistro and Newman’s Own Organics as companies that sell a variety of food products some of which, but not all, are certified organic. According to the institute, this practice “is not only highly misleading to consumers, but also in violation of the organic standards.”

The letter addressed to the FTC chair calls the practice a violation of unfair competition law and calls for a formal investigation of the three named companies. According to the institute, “Companies that sell non-organic foods, or food with less than 95% organic ingredients, yet use the term ‘organic’ or ‘organics’ in their company name, are therefore profiting from the good name and reputation of organics without giving consumers the organic ingredients they expect.” The institute’s co-director reportedly said, “Deceptive labeling practices, like putting organic in a company or brand name, hurts the ethical competitors and the entire food industry by blurring the meaning of the word ‘Organic’ for consumers. Consumers should be able to trust that any food package with the word ‘Organic’ displayed prominently is truly certified organic, contains predominantly organic ingredients, and meets the letter and spirit of the law.”

An institute press release indicates that the issue is scheduled to be discussed at the National Organic Standards Board’s April 26 meeting in Davis, California. Still, the institute decided to bring legal action before the USDA and FTC, arguing that they already have the statutory authority to take action on the matter. See Cornucopia Institute Press Release, April 22, 2010.

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For decades, manufacturers, distributors and retailers at every link in the food chain have come to Shook, Hardy & Bacon to partner with a legal team that understands the issues they face in today's evolving food production industry. Shook attorneys work with some of the world's largest food, beverage and agribusiness companies to establish preventative measures, conduct internal audits, develop public relations strategies, and advance tort reform initiatives.

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