A consumer has filed a putative class action against the manufacturers of Rachael Ray’s dog foods, alleging that the products are labeled as “natural” despite containing artificial or synthetic chemicals. Grimm v. APN, Inc., No. 17-0356 (C.D. Cal., filed February 28, 2017). The plaintiff claims that she only bought the dog foods, sold under the Nutrish , Dish, Zero Grain and Just 6 labels, because they were labeled as natural and free of preservatives and would have purchased other products had she known the foods contained “artificial preservatives and unnatural ingredients.” The plaintiff alleges the defendant manufacturers “capitalized” on consumer preferences for natural food products. The product labels indicate that the dog foods contain L-ascorbyl-2 polyphosphate, menadione sodium bisulphate complex, thiamine mononitrate, and caramel color. For alleged negligent representation, violations of California’s Legal Remedies Act, False Advertising Law and Unfair Competition Law, breach of warranties and quasi-contract, the plaintiff is…
A consumer has filed a putative class action against Ferrara Candy Co. claiming that its packaging of Jujyfruits and other candies misleads consumers by misrepresenting the amount of candy contained in each box. Iglesias v. Ferrara Candy Co., No. 17-0849 (N.D. Cal., filed February 21, 2017). The plaintiff claims that Ferrara “shortchanges consumers” by underfilling its opaque candy boxes. In movie theaters, where boxed candies are sold, the boxes are kept behind glass showcases, the complaint asserts, and consumers have no opportunity to examine net weight, serving disclosures or other labeling until after paying for the candy. Moreover, the plaintiff claims that consumers’ purchasing decisions are heavily dependent on product packaging and that “consumers are apt to choose the larger box because they think it’s a better value.” The action includes other candy lines manufactured by Ferrara, including Lemonhead , RedHots , Chuckles , Brach’s and Atomic Fireball products. For…
A New York federal court has dismissed a putative class action against Chipotle Mexican Grill Inc. alleging the burrito chain violated the Securities and Exchange Act of 1934 by making material misrepresentations about the company’s response to food-borne illnesses linked to its stores. Ong v. Chipotle Mexican Grill, Inc., No. 160141 (S.D.N.Y., order entered March 8, 2017). The court has granted the plaintiffs, led by Metzler Investment GmbH and Construction Laborers Pension Trust of Greater St. Louis, leave to amend. Chipotle’s stock price dropped in 2015 after outbreaks of foodborne illnesses, including norovirus, E. coli and Salmonella, were linked to its stores. As a result, Chipotle profits declined by 95 percent in 2016 as compared to the year before. The plaintiffs alleged that Chipotle and three of its executives misled shareholders and the public in the statements and reports it released about the outbreaks, although Chipotle predicted poor performance in…
The widow of a Vermont man who died after eating rawmilk cheese allegedly contaminated with Listeria monocytogenes has filed suit against the manufacturer of the cheese, Vulto Creamery. Friedman v. Vulto Creamery LLC, No. 17-0283 (N.D.N.Y., filed March 10, 2017). Vulto issued a recall of its Ouleout, Miranda, Heinennellie and Willowemoc raw-milk cheeses in March 2017 after the U.S. Food and Drug Administration identified Ouleout as the source of a Listeria outbreak that began in September 2016. The complaint asserts that multiple people became ill or died after eating Vulto’s Ouleout. For alleged strict liability, breach of warranty, negligence and negligence per se, the plaintiff is seeking damages and attorney’s fees. Issue 627
Three environmental and conservation advocacy groups have moved to intervene in a lawsuit filed by a group of seafood processing, distribution and retail companies to block implementation of the Seafood Import Monitoring Program. Alfa Int’l Seafood, Inc. v. Sullivan, No. 17-0031 (D.D.C., motion filed March 7, 2017). Natural Resources Defense Council, Oceana and the Center for Biological Diversity are asking to defend the oversight program, known as the Seafood Traceability Rule, which gives the National Oceanic and Atmospheric Administration power over stringent reporting and recordkeeping of fish catches, vessel and species identification, names of buyers and other chain-of-custody information. The National Marine Fisheries Service published the rule in December 2016 to combat U.S. imports of seafood alleged to be the product of illegal, unreported and unregulated fishing, along with fraudulent practices such as mislabeling of species. Issue 627
The U.K. Advertising Standards Authority (ASA) upheld a complaint about the “About Us” section of its website for Appy Food & Drinks, which contained a claim that all of the advertiser’s juice drinks were “100% natural” despite containing calcium lactate and glucose-fructose syrup. Appy Foods asserted that calcium lactate is a salt obtained through a natural fermentation process and occurs naturally in dairy products, and glucose-fructose syrup is obtained through hydrolysis of cornstarch, also a natural process. The watchdog agency reviewed Appy’s production processes and found that Appy did not provide sufficient evidence to demonstrate that the calcium lactate production process was “natural,” and further that the glucose-fructose syrup was produced by the addition of an enzyme isomerase to the cornstarch, a “non-traditional” treatment falling outside the definition of “natural” in the Food Standards Agency guidelines. Because the Appy juice drinks were not “single foods,” the ASA decided that the…
The U.S. Senate is considering a bill that would give food and agriculture officials greater oversight of mergers and acquisitions involving U.S. food companies and foreign entities and includes new criteria to determine whether a transaction could result in control of a U.S. business by a foreign company. The bill would make the Secretary of Agriculture and the Secretary of Health and Human Services (HHS) permanent members of the Committee on Foreign Investment in the United States (CFIUS). The purpose of CFIUS is to assess whether transactions involving foreign entities may impair U.S. national security; the bill adds criteria to the CFIUS review process to ensure that transactions are reviewed specifically for their potential impact on U.S. food and agriculture systems, including the availability of food and its safety and quality. Sens. Chuck Grassley (R-Iowa), Debbie Stabenow (D-Mich.) and Joni Ernst (R-Iowa) introduced Senate Bill 616, titled the “Food Security…
Concerns about how or whether the term “healthy” should be used in food labeling and packaging prompted the U.S. Food and Drug Administration (FDA) to hold a public comment meeting on the issue on March 9, 2017. Current FDA regulations allow the use of the term “healthy,” as well as similar terms, as implied nutrient-content claims. However, the criteria for use vary for different food categories, and the criteria themselves are linked to elements of the nutrition facts panel and serving size regulations—both of which have undergone significant changes in recent years. FDA also received a citizen petition in 2015 from Kind LLC, a producer and distributor of snack bars, requesting the agency amend its regulations defining the use of the term with respect to total fat intake and emphasizing whole foods and dietary patterns instead of specific nutrients. Accordingly, FDA’s 2016 publication of “Use of the Term ‘Healthy’ in…
A California-based seafood company has reportedly been sentenced in federal court for knowingly selling mislabeled frozen fish fillets. United States v. Seafood Solutions, Inc., No. 11-297 (C.D. Cal., sentencing February 6, 2012). Seafood Solutions, Inc. agreed to plead guilty to the charge in July 2011, as part of a federal investigation into companies that had been selling Asian catfish imports under other labels to avoid anti-dumping duties. Under the terms of the agreement, the company was fined $700,000 and will pay an additional $300,000 to the National Fish and Wildlife Foundation. Two California men also pleaded guilty in connection with the scam and are apparently scheduled for sentencing on February 12, 2012. See Law360, February 7, 2012.
Slim-Fast Foods Co. has ended its “100 Calories Snacks” advertisements appearing in Star magazine after the advertising industry’s self-regulation investigative unit, the National Advertising Division, determined that the format of the ads could mislead consumers into believing they were part of the publication’s editorial content. The cover of Star featured “what appeared to be an article on weight loss that claimed, ‘Joann LOST 40 lbs’ and ‘snack away the weight,’” which directed readers to a page with a piece titled “Snack Your Way to Slim” that detailed three women’s efforts to lose weight and how Slim-Fast snacks supposedly helped. Slim-Fast has reportedly agreed to discontinue the advertisements at issue as well as the advertising format. Issue 626
