A California federal court has allowed plaintiffs in a false advertising putative class action to dismiss their claims of fraud based on the “extra virgin” quality of Filippo Berio olive oil in favor of pursuing their allegations that the products are falsely labeled as “made in Italy.” Kumar v. Salov N. Am. Corp., No. 14-2411 (N.D. Cal., Oakland Div., order entered January 8, 2016). The plaintiff sought to dismiss the “extra virgin” portion of the claims after the discovery process revealed the olive oil was sold in both clear-glass bottles—which the plaintiff asserted could damage the quality of the oil because of the light allowed through the glass—and tinted-glass bottles. Additional details about the claims’ survival of a motion to dismiss appear in Issue 554 of this Update. In February 2015, Shook Partner Ann Havelka authored an article for Law360 examining the case, arguing that it is “an example of…
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Baltimore City Councilman Nick Mosby (D) has introduced legislation that would require health warnings for sugar-sweetened beverages (SSBs) in certain advertisements, menus, menu boards and point-of-sale signage. “The beverage industry specifically targets youth and communities of color with its marketing efforts, spending $395 million in marketing directed at youth and $28.6 million on marketing campaigns specifically targeting African-American and Hispanic youth,” according to Council Bill 16-0617. The draft ordinance further asserts, among other things, that some 25 percent of school-age Baltimore City children drink one or more soda daily. The proposed health notice would state: “Warning: Drinking beverages with added sugar contributes to tooth decay, obesity, and diabetes. This message is from the Baltimore City Health Department.” Violators of the ordinance would face misdemeanor fines as high as $1,000. The proposal has been referred to the Department of Health. See The Baltimore Sun, January 11, 2016. Issue 590
The U.K. Advertising Standards Authority (ASA) has dismissed a complaint alleging that Diageo Great Britain Ltd.’s holiday commercials for Baileys™ liqueur “implied that the success of a social occasion depended on the presence or consumption of alcohol.” Despite Alcohol Concern’s claim that the tagline “IT’S NOT CHRISTMAS WITHOUT YOU… BAILEYS” was “irresponsible,” the agency agreed with Diageo Great Britain and Clearcast that consumers were likely to understand “Christmas” as a reference to the entire holiday season as opposed to a specific social occasion. “We considered that consumers would interpret the claim “IT’S NOT CHRISTMAS WITHOUT YOU” as a play on words referring to getting together with friends over the festive period, as well as referring to the fact that the drink had been traditionally associated with the Christmas period,” ASA said. “We noted that the ad showed the women enjoying one drink together, and there was no suggestion that the…
Photographer Mitchel Gray has reportedly filed a lawsuit against Jeff Koons alleging that one of the artist's works infringes on Gray's copyright to a photo used in a Gordon's® gin advertisement in 1986. The ad portrays a photo of a woman painting on the beach and a man seated next to her, a photo of a bottle of Gordon's® and the tagline "I could go for something cool, crisp and Gordon's." Koons' version, which uses the photo with slightly adjusted colors, a bottle of Gordon's® in a different spot and the tagline "I could go for something Gordon's," sold for $2.04 million at auction in 2008. The complaint reportedly asserts that Koons never contacted Gray for permission to use the photo and never provided him any compensation from the proceeds of the auction, citing for added support Koons' testimony from a similar infringement case filed in 1989 involving a different…
The San Francisco Board of Supervisors has reportedly voted to repeal an ordinance prohibiting advertisements for sugar-sweetened beverages (SSBs) on city property in light of the U.S. Supreme Court ruling in Reed v. Town of Gilbert, Ariz., that struck down a comparable initiative restricting advertising on public property. The ordinance was one of three passed by the municipal lawmakers in June 2015. The others (i) mandate health warnings on most billboards and ads for SSBs with 25 or more calories and (ii) prevent city departments and contractors from using city funds to purchase SSBs. “We may have lost this particular battle, but the war rages on,” Supervisor Malia Cohen was quoted as saying. “We didn’t take down Big Tobacco overnight—we’re not going to take down Big Soda overnight either.” The American Beverage Association filed suit against both advertising ordinances on First Amendment grounds, and its challenge of the mandated health…
The National Advertising Division (NAD), an investigative unit of the U.S. advertising industry’s system of self-regulation, has referred to the U.S. Food and Drug Administration (FDA) and Federal Trade Commission (FTC) an ad campaign for Danisa “Traditional Butter Cookies,” which are manufactured by the Mayora Group in Indonesia and distributed by Takari International, Inc. NAD evaluated the campaign in April 2015 after Campbell Soup Co. challenged several aspects of the product’s marketing, including the claim that the cookies are “produced and packed in Denmark” and “baked following the original recipe from Denmark,” as well as the use of Scandinavian imagery. Further, Campbell argued that FDA requires any product labeled as “Butter Cookies” to use only butter as a shortening ingredient, but multiple independent studies have shown the presence of a non-butter fat ingredient in the Danisa product. Takari International argued it could not be liable for packaging claims or discrepancies…
A Florida federal court has given final approval to the settlement agreement in a lawsuit alleging Anheuser-Busch falsely advertised its Beck's® beer as imported even though it was manufactured in St. Louis, Mo. Marty v. Anheuser-Busch Cos., LLC, No. 13-23656 (S.D. Fla., approval entered October 20, 2015). Under the agreement, Anheuser-Busch will offer refunds in several tiers, including $0.10 per individual bottle, $0.50 per six-pack and $1.75 per 20-pack, with a cap of $50 per household for those consumers with receipts and $12 for those without. The company will also add language to Beck's® packaging indicating the beer is a "Product of USA." Additional details about the settlement appear in Issue 570 of this Update. Issue 582
The U.K. Advertising Standards Authority (ASA) has released a trio of decisions upholding complaints against two distilleries and a bread company over allegedly misleading advertisements. Ruling against Summerhall Distillery Ltd. in a complaint filed by a rival company, ASA took issue with advertisements for “hand crafted” Pickering’s Gin that touted Summerhall as Edinburgh’s first gin distillery in more than 150 years, a claim the authority found could not be substantiated. “We considered that linking the product to the heritage of the spirit trade in Edinburgh and to imply that it was related to a revival of this industry was likely to be of particular interest to some consumers, and that its provenance in this context was therefore material information,” states ASA’s decision, which notes the presence of distillery operations within Edinburgh since 1863. “Because the claims had not been substantiated, we concluded that the ads were misleading.” In addition, ASA sided…
Proximo Spirits, Inc. has settled a class action alleging it deceptively marketed Tincup Whiskey® as manufactured entirely in Colorado despite part of its production occurring in Indiana. Aliano v. Proximo Spirits, Inc., No. 14-17429 (Ill. Cir. Ct., Cook Cty., preliminary approval entered September 16, 2015). Proximo has agreed to establish a $425,000 settlement fund to pay class members with proofs of purchase $4.50 and $2.25 to those without, per bottle purchased. In addition, class members who purchased Tincup for on-premises consumption can receive $0.75 up to a maximum of five drinks. Future Tincup labels will no longer feature claims that the product was manufactured entirely in Colorado and instead must identify the state or states where Proximo manufactured the product. Issue 580
The Committees of Advertising Practice (CAP), a group that works in conjunction with the U.K. Advertising Standards Authority, has announced a pre-consultation with various stakeholders in advance of new rules targeting non-broadcast advertising of food and soft drinks high in fat, salt or sugar to children. Non-broadcast channels of advertising include online, outdoor, print media, cinema, and direct marketing. “Our decision to carry out a public consultation responds, in part, to changes in children’s media habits and evolving advertising techniques,” according to CAP. “It also reflects a growing consensus, shared by public health and industry bodies, about the role of advertising self-regulation in helping to bring about a change in the nature and balance of food advertising targeted to children.” CAP reportedly plans to launch the public consultation in early 2016. See CAP News Release, September 29, 2015. Issue 580
