A California court held that Bumble Bee Foods, LLC did not act illegally by claiming its tuna was an “excellent source” of omega-3 fatty acids despite a U.S. Food and Drug Administration (FDA) proposal to prohibit the practice. Garrett v. Bumble Bee Foods, LLC, No. 14-264322 (Cal. Sup. Ct. Santa Clara Cty., order entered March 30, 2017). The plaintiffs alleged Bumble Bee began making the omega-3 claim in 2008, one year after FDA published its proposed rule, but the court found that Bumble Bee ended the claim after the rule was finalized in April 2014. “The fact that Bumble Bee engaged in conduct that was proscribed by a ‘proposed’ rule does not make it unlawful or illegal,” the court said. Bumble Bee began using the omega-3 claim after a supplement maker notified FDA in 2005 that it intended to use an omega-3 nutrient content claim on its product labels. Because…
Several members of Congress, led by Reps. Ileana Ros-Lehtinen (RFla.) and Debbie Wasserman Schultz (DFla.), have urged Secretary of State Rex Tillerson and Secretary of the Treasury Steven Mnuchin to review the Office of Foreign Assets Control's (OFAC's) "unprecedented decision to grant a license to allow Cubaexport, an entity whollyowned by the Cuban government, to renew an expired trademark registration for Havana Club rum in the United States." The lawmakers express concern about the implications for American intellectual property rights holders because "Cubaexport claims rights to the Havana Club registration through its confiscation, without compensation, of the Jose Arechabala Company" in 1960. "By allowing the Cuban regime to register the Havana Club trademark, OFAC is out of step with longstanding United States policy, and has set a terrible precedent for American intellectual property rights holders," Wasserman Schultz said in a March 29, 2017, press release. "I urge OFAC to reverse…
The California legislature is considering a bill to make the state the first in the nation to ban perfluorinated chemicals (PFCs) from restaurant food wrappers and containers. The bill proposes that food providers “shall not serve, sell, offer for sale, or offer for promotional purposes prepared food or fast food in, on, or with take-out foodservice ware or packaging that contains a fluorinated chemical.” The bill has been referred to the Committee on Environmental Safety and Toxic Materials and set for hearing on April 25, 2017. According to the Centers for Disease Control and Prevention (CDC), scientists do not have enough information to evaluate the health effects of exposure to per- and polyfluoroalkyl substances (PFAS)—a group of materials to which PFCs belong—although some studies have allegedly shown that PFAS may affect the growth of fetuses, decrease fertility and interfere with normal hormonal function, among other possible effects. Exposure to PFAS…
A majority of EU countries reportedly voted against allowing the cultivation of two genetically modified (GM) types of maize as well as the extension of approved cultivation areas for another GM maize already grown in Spain. Neither vote was decisive under EU rules, which require 65 percent of countries’ votes to decide, so the determination will go to European Commission President Jean-Claude Juncker. See Reuters, March 27, 2017. In an April 4, 2017, press release, members of European Parliament urged the European Commission to halt plans to allow the import of GM maize, highlighting "the lack of data on the many subcombinations of the variety—all of which would also be authorised" and arguing for reform of the GM authorization procedure. Issue 630
California's Office of Environmental Health Hazard Assessment (OEHHA) has announced that glyphosate will be listed under the state's Safe Drinking Water and Toxic Enforcement Act (Prop. 65). In September 2015, OEHHA announced its findings on the carcinogenicity of glyphosate, a chemical used in pesticides that has been targeted in several putative class actions challenging whether a product can be "natural" if its ingredients retain some glyphosate residue from the growing process. The effective date of listing and the proposed safe harbor level will be determined after a California appeals court rules on a stay. Issue 630
A Las Vegas restaurant called the Heart Attack Grill has filed suit against a Tennessee restaurant calling itself the Heart Attack Shack, claiming trademark infringement. HAG IP, LLC v. Tipps Enterprises Inc., No. 17-0652, (M.D. Ky., filed March 29, 2017). The Las Vegas restaurant, which claims trademarks on its Single, Double, Triple and Quadruple Bypass burgers and Flatliner Fries, alleges that the Tennessee restaurant, which features burgers, wings and “Flatliner XL” fries, has infringed its trademarks. In a February 2017 article in the Chattanooga Times Free Press, the defendant owner claimed he named his restaurant after a “heart attack” burger on the menu of a restaurant that previously occupied his location. For trademark infringement of registered marks, the plaintiff seeks injunctive relief, accounting, damages, attorney’s fees and destruction of all promotional materials bearing the trademarks. In 2012, after the plaintiff sent a cease and desist letter to New York’s Second…
A jury has unanimously found Elements Spirits Inc. and its founder liable for trade dress infringement of Globefill Inc.'s Crystal Head, a vodka created by actor Dan Aykroyd and sold in a skull-shaped container. Globefill Inc. v. Elements Spirits Inc., No. 10-2034 (C.D. Cal., verdict entered March 29, 2017). Just before the case went to jury deliberation, Globefill called a final rebuttal witness, a sculptor who testified that the founder of Elements Spirits asked him in 2009 to create a mold of the Crystal Head skull bottle that served as the base for Elements Spirits' Kah tequila bottles. After four hours of deliberation, the jury concluded the three-week trial with a verdict for Globefill. See Law360, March 29, 2017. Issue 629
Chipotle Mexican Grill Inc. won decertification of a class action comprising more than 500 management trainees in 37 states when a federal court ruled that there were too many differences in the trainees’ ability to perform managerial duties, causing the action to fail the predominance test. Scott v. Chipotle Mexican Grill Inc., No. 12-8333, (S.D.N.Y., order entered March 29, 2017). Seven named plaintiffs won conditional class certification in June 2013, after which 516 additional plaintiffs opted in. The plaintiffs, who worked as “apprentices,” were temporary workers training for positions as restaurant general managers. The complaint alleged apprentices were classified as exempt and illegally denied overtime even if they spent most of their time on nonmanagerial tasks such as preparing food or serving customers, violating the Fair Labor Standards Act (FLSA) and state labor laws. However, the court found that the plaintiffs’ testimony contained too much conflicting information about the apprentices’…
Energy-drink company Rockstar faces a putative class action alleging the company underfilled cans of its coffee drinks, giving the company an unfair competitive advantage and shortchanging consumers. Podawiltz v. Rockstar, Inc., No. 17-0477 (D. Ore., filed March 26, 2017). The plaintiff claims he bought several cans of Rockstar’s coffee drinks labeled “15 fl oz [473 ml],” but that independent lab testing showed the cans contained an average of 443 milliliters, about six percent less. For an alleged violation of the Oregon Unlawful Trade Practices Act, the plaintiff seeks class certification, injunctive relief, an accounting, restitution, damages and attorney’s fees. Issue 629
A California plaintiff has filed suit against the makers of Jelly Belly Sport Beans claiming the candy maker’s labeling leads consumers to believe the product does not contain sugar. Gomez v. Jelly Belly Candy Co., No. 17-0575 (C.D. Cal., filed March 24, 2017). The complaint alleges the product label says Sport Beans contain “evaporated cane juice,” but not sugar or any other “commonly known sweetener.” The plaintiff claims such labeling violates a Food and Drug Administration guidance document advising manufacturers that the term “evaporated cane juice” is not the common or usual name of any type of sweetener and that the ingredient should be listed on product labels as sugar. The plaintiff also claims Sport Beans are marketed as “energizing,” containing “quick energy for sports performance,” as well as carbohydrates, electrolytes and vitamins. For allegations of negligent misrepresentation and California consumer-protection statute violations, the plaintiff seeks class certification, restitution, damages,…
