German officials are reportedly considering banning high-energy drink Red Bull Cola® after a food safety institute in North-Rhine Westphalia found traces of cocaine in the beverages. While the levels found did not pose a health threat, cocaine’s presence in a product requires special licensing. German authorities in two states have reportedly ordered retailers to stop selling the beverage. The product’s manufacturer reportedly admitted that it contains de-cocainized extract of coca leaf, but said the leaf “is used worldwide in foods as a natural flavoring.” The drink, which also contains caffeine, vitamins and sugar, is apparently popular in bars where it is often mixed with vodka. Hong Kong officials also found traces of cocaine in the beverage a few days after Taiwanese authorities reportedly confiscated some 18,000 cases of the product. The drink has been removed from the shelves of major supermarkets in Hong Kong, and its commissioner for narcotics is…
According to a news source, a Las Vegas-based company and its co-owners have agreed to plead guilty to charges that they imported from China melamine-tainted wheat gluten used to make the pet food that purportedly sickened and killed thousands of cats and dogs in the United States and Canada in 2007. More details about the criminal indictments appear in issue 247 of this Update. ChemNutra, Inc. and its co-owners, Stephen and Sally Miller, have apparently reached an agreement with federal prosecutors and will enter their pleas during a June 16, 2009, hearing. The export broker, a Chinese company, allegedly mislabeled 800 metric tons of wheat gluten to avoid inspection in China and did not properly declare the contaminated product when it was shipped to the United States for use in pet food. ChemNutra took delivery of the wheat gluten in Kansas City and then sold it to various pet food manufacturers.…
A federal court in California has dismissed a putative class action alleging that the maker of Cap’n Crunch with Crunchberries® cereal misrepresented its product in violation of the state’s Business & Professions Code. Sugawara v. Pepsico, Inc., No. 08-01335 (E.D. Cal., decided May 21, 2009). Plaintiff alleged that the colorful “Crunchberries” depicted on the cereal box, combined with the use of the word “berry” in the product name, convey the message that the product contains fruit. She claimed that she purchased the product for some four years because she had been misled by defendant’s advertising and misrepresentations, never discerning that the product has no berries of any kind and that the only fruit content is “strawberry fruit concentrate, twelfth in order on the ingredient list.” According to the court, “while the challenged packaging contains the word ‘berries’ it does so only in conjunction with the descriptive term ‘crunch.’ This Court…
A California appeals court has determined that Starbucks did not violate state labor laws by allowing shift supervisors to share the tips left by customers in collective tip boxes and thus, overturned an $86 million award made to a class of current and former Starbucks’ baristas. Chau v. Starbucks Corp., No. D053491 (Cal. Ct. App., decided June 2, 2009). Because shift supervisors serve customers and rotate such duties with baristas, the appeals court determined that the shift supervisors were among those for whom the tips were intended. So ruling, the court distinguished Starbucks’ policy of equitably distributing collective tip-box proceeds from the prohibited practice of mandatory tip pooling.
The multitdistrict litigation (MDL) court in Missouri before which nearly 20 putative class actions against Aurora Dairy Corp., an accredited organic certifying agent and several retailers had been consolidated for pre-trial proceedings, has dismissed the lawsuits with prejudice finding that federal organic food laws preempt the claims. In re Aurora Dairy Corp. Organic Milk Mktg. & Sales Practices Litig., MDL NO. 08-1907 (E.D. Mo., decided June 3, 2009). Relying on a U.S. Department of Agriculture (USDA) investigation that found the dairy in violation of national organic program requirements relating to pasturing and organic management, the plaintiffs alleged violations of various state consumer protection laws, breaches of express and implied warrantees, negligence per se, negligent misrepresentation, and unjust enrichment. The court discusses at length the program under which Aurora Dairy conducted its operations with the overall supervision and control of USDA. While the court found that the litigation claims were not expressly…
The Federal Trade Commission (FTC) has announced its approval of a final consent order in its challenge to the merger of Whole Foods Market, Inc. and Wild Oats Markets, Inc. Under the agreement, Whole Foods will sell 32 of its supermarkets and give up unrestricted rights to the “Wild Oats” brand. When the agreement was announced in March 2009, FTC Chair Jon Leibowitz claimed, “As a result of this settlement, American consumers will see more choices and lower prices for organic foods.” Whole Foods and Wild Oats completed their merger before an appeals court finally agreed with the FTC that the merger could have anti-competitive effects and allowed it to move forward with administrative proceedings against the company. Thus, it was unclear until the consent order was filed what remedies could be ordered if the FTC proved its case. See FTC Press Release, May 29, 2009.
Oregon’s Senate has reportedly approved a bill (H.B. 2726) that would require restaurants with more than 15 locations nationwide to post information about calories, saturated fats and sodium for all menu items. According to a news source, some 69 percent of state residents polled have said that they want more nutritional information on restaurant menus. The legislation, which now awaits the governor’s signature, would require the information to be posted on menus, menu boards and drive-through displays. See Oregon Senate Democrats Press Release, June 1, 2009.
The U.S. Department of Agriculture (USDA) has issued a proposed rule that would amend its national list of allowed and prohibited substances for organic crop production and organic processing. The rule adds six substances, including the fortified cooking wines marsala and sherry for organic processing, and removes one substance from the list. Written comments must be received by August 3, 2009. See Federal Register, June 3, 2009.
The Food and Drug Administration (FDA) has issued a final rule that requires bottled water manufacturers to face stricter standards to prevent E. coli contamination . All manufacturers are currently required to test source water for germs each week, but starting December 1, 2009, if tests prove positive for E. coli, companies must explain in writing how they eliminated the bacteria and retest samples before use. FDA states that “bottled water containing E. coli will be considered adulterated and source water containing E. coli will not be considered to be of a safe, sanitary quality and will be prohibited from use in the production of bottled water.” E. coli infection indicates fecal contamination that can apparently cause stomach cramps, diarrhea or possible fatal infections. Although bottled water is currently tested for coliforms–a group of mostly harmless bacteria–and fecal contamination, the new rules require the water source itself to be tested.…
U.S. Food and Drug Administration (FDA) Commissioner Margaret Hamburg has expressed support for the Food Safety Enhancement Act of 2009, which seeks to increase the agency’s authority over U.S. and foreign food producers, including the power to issue mandatory recalls of tainted foods. “FDA needs new legal authorities to succeed in these roles and protect the public health,” she was quoted as saying before the U.S. House Committee on Commerce and Energy on June 3, 2009. “This legislation would provide those tools.” A group of congressional Democrats in late May released a discussion draft of the Act, which would take effect in 18 months if passed. The legislation includes provisions that would (i) create an up-to-date registry of all food facilities serving American consumers, (ii) require such facilities to pay a $1,000 fee to generate resources to support FDA oversight of food safety, (iii) strengthen criminal penalties and establish civil…
