A consumer has filed a projected class action alleging Asahi Beer U.S.A., Inc. misleads customers into believing that Asahi Super Dry beer is made in Japan despite being produced in Canada. Panvini v. Asahi Beer U.S.A., Inc., No. 17-1896 (N.D. Cal., filed April 5, 2017). The plaintiff claims that although most of the Asahi Dry beer sold worldwide is brewed in and exported from Japan, the product sold in the United States is made in Toronto, Canada. The complaint alleges that Asahi misleads consumers by using Japanese lettering on labels and packaging and by describing it as the “most popular high-quality beer in Japan.” Claiming violations of California’s consumer-protection statutes, the plaintiff seeks injunctive and equitable relief, restitution, damages and attorney’s fees. Issue 631
Italy has reportedly proposed new legislation that would require food manufacturers to include country-of-origin labeling (COOL) on all pre-packaged food labels or face fines of up to €18,000. Under the proposal, food-product labels must list an Italian address for the food’s production facility or indicate that the food is made outside of the country. Italy’s COOL initiative for dairy products takes effect April 18, 2017, and a similar initiative for pasta products is pending. See Food Navigator, April 10, 2017. Issue 631
Canada has announced a proposal to ban the use of partially hydrogenated oils (PHO) in food by adding them to the agency’s “List of Contaminants and Other Adulterating Substances in Food” by summer 2018. That deadline would bring Canada in line with the United States, where food manufacturers have until June 2018 to remove PHO from their products. The agency’s goal is to reduce trans fats for most Canadians to less than one percent of their total energy intake, which is expected to lead to a reduced risk of heart disease. Health Canada proposes defining PHO in their food and drug regulations as fats and oils that (i) “have been hydrogenated, but not to complete or near complete saturation” and (ii) “have an iodine value (IV) greater than 4.” The proposal would identify PHO as a food adulterant if present at any level. The agency will continue to consider additional…
The U.S. Food and Drug Administration (FDA) has announced an extension to its comment periods for information on the use of genome editing techniques in animals and in plant varieties used for human or animal food. Comments on FDA's draft guidance, "Regulation of Intentionally Altered Genomic DNA in Animals," and on the use of genome editing techniques to produce new plant varieties will be accepted until June 19, 2017. Issue 631
The Trademark Trial and Appeal Board (TTAB) has affirmed a refusal by the U.S. Patent and Trademark Office (USPTO) to register a trademark for La Finca wines on the grounds that the winemaker failed to show evidence that the brand has acquired distinctiveness. In re Finca La Celia, S.A., No. 86130560 (opinion issued March 31, 2017). Argentina-based winemaker Finca La Celia, which sells its La Finca wines in Trader Joe’s stores, applied for registration of the mark in 2013 and appealed after a second reconsideration was denied. TTAB reversed USPTO’s refusal to register the mark on the ground that it was generic, holding that even though the term “la finca,” which means “the estate” in Spanish, is “merely descriptive,” the term is “not perceived by the relevant public as a generic name for a type of wine.” TTAB affirmed the USPTO ruling that the maker had failed to show La…
A federal court in California has given preliminary approval to a proposed $8.25-million settlement of a class action claiming that kombucha tea products manufactured by Millennium Products, Inc. and sold at Whole Foods were mislabeled. Retta v. Millennium Products, No. 15-1801 (C.D. Cal., order entered January 31, 2017). The plaintiffs claimed that the kombucha labels (i) used the term “antioxidant” when the product contained none; (ii) used the term “non-alcoholic” when the fermented tea product allegedly contained alcohol in excess of the amount permitted for nonalcoholic beverages; and (iii) understated the amount of sugar in the product. In its order, the court granted class certification and approved monetary and injunctive relief, including Millennium’s agreements to (i) add warning labels that the product contains alcohol and must be refrigerated because it is under pressure; (ii) conduct regular sample testing to ensure the accuracy of the products’ sugar content; and (iii) adopt…
A California court is allowing to proceed a putative slack-fill class action against Golden Grain Inc., a subsidiary of PepsiCo, Inc. that makes Near East rice and grain products. Arcala v. Golden Grain Co., No. 16-555084 (Cal. Sup. Ct. San Francisco Cty., order entered April 5, 2017). The plaintiffs allege that Golden Grain’s couscous, rice pilaf, quinoa, tabbouleh and other products are packaged with nonfunctional slack fill in violation of state law, and the court rejected Golden Grain’s arguments that the complaint made no distinction between functional and nonfunctional slack fill. Among other relief, the ® plaintiffs are seeking an injunction, restitution and class certification. Issue 630
Wise Foods, Inc. is facing a projected class action claiming the company’s potato chip bags have more than double the amount of slack fill as its major competitors’ bags. Alce v. Wise Foods, Inc., No. 17-2402 (S.D.N.Y., filed April 3, 2017). The plaintiffs claim that bags of 21 varieties of Wise’s Potato Chips, Kettle Cooked Potato Chips and Ridgies can contain as much as 67 percent slack fill, while the company’s own Dipsy Doodles Corn Chips contain only about one-third slack fill. For alleged violations of New York’s Deceptive and Unfair Trade Practices Act, false advertising laws, the District of Columbia’s Consumer Protection Procedures Act and unjust enrichment, the plaintiffs seek class certification, an injunction, damages and attorney’s fees. Issue 630
Twenty-three Dunkin’ Donuts franchise locations in Massachusetts have reached a tentative settlement with a plaintiff who claimed the stores served him “margarine or a butter substitute” on his bagels despite his request for butter. Polanik v. Boston Hill Donuts, LLC, No. 17-84914 (Suffolk Cty. Superior Ct., settlement agreement filed March 24, 2017); Polanik v. CM&R Donuts, Inc., No. 17-84915 (Suffolk Cty. Superior Ct., settlement agreement filed March 24, 2017). In both projected class actions, the plaintiff claimed he paid 25 cents each time he ordered butter and was never told a butter substitute was used instead. A Dunkin’ Donuts spokesperson told The Boston Globe in 2013 that the recommended store procedure was to serve individual whipped butter packets if requested by the customer, but otherwise employees apply “vegetable spread” to bagels or pastries. If the settlement is approved, the plaintiff will receive $500 and up to 1,400 customers may claim…
The owner of one of the largest commercial fishing businesses in the United States has pleaded guilty to conspiracy, falsifying federal records, cash smuggling and tax evasion in a case accusing him of deliberately misreporting the types of fish he caught to the National Oceanic and Atmospheric Administration (NOAA). U.S. v. Rafael, No. 16-10124 (D. Mass, plea entered March 30, 2017). Carlos Rafael, owner of Carlos Seafood, Inc. and known as the “Codfather,” will face possible forfeiture of his business assets and up to five years in prison at his June 2017 sentencing. An Internal Revenue Service (IRS) investigation apparently found that Rafael caught 800,000 pounds of fish over several years and reported it as haddock, pollock or other species with high NOAA quotas despite containing thousands of pounds of fish with lower quotas, including cod, flounder, grey sole, yellowtail and American plaice. Rafael also told IRS agents posing as…
