California residents have filed a putative class action in a federal court against grocery chain Trader Joe’s Co., alleging that a number of its “All Natural” products contain synthetic or artificial ingredients and thus are mislabeled and falsely advertised. Larsen v. Trader Joe’s Co., No. 11-5188 (N.D. Cal., filed October 24, 2011). According to the complaint, “The labeling of products as ‘All Natural’ carries implicit health benefits important to consumers—benefits that consumers are often willing to pay a premium for over comparable products that are not ‘All Natural.’ Trader Joe’s has cultivated and reinforced a corporate image that has catered to this ‘All Natural’ theme and has boldly emblazed this claim on each and every one of its foods identified above, despite the fact Trader Joe’s uses synthetic ingredients in the products identified above.” The listed products include cookies, biscuits, cheese, fruit jellies, and apple juice sold under the Trader…
Tag Archives advertising
A federal court in California has issued orders allowing certain claims to proceed in Lanham Act litigation brought by sugar producers against trade associations and companies that make high-fructose corn syrup (HFCS). W. Sugar Coop. v. Archer-Daniels-Midland Co., No. 11-3473 (C.D. Cal., orders entered October 21, 2011). The plaintiffs allege that an advertising campaign the defendants launched in 2008 to tell the public that “HFCS is corn sugar,” “HFCS is natural,” and “sugar is sugar” contains false representations about HFCS “that constitute false advertising under the Lanham Act and a violation of the California[] Unfair Business Practices Act.” The defendants filed a motion to dismiss contending that the plaintiffs had failed to state a claim on which relief can be granted. While the court agreed that the plaintiffs had failed to state a claim against individual trade association members, it found the pleadings sufficient to state a claim for false advertising…
Several consumer advocacy organizations have filed a complaint with the Federal Trade Commission (FTC) based on a report that “identifies, analyzes, and documents a set of digital marketing practices that pose particular threats to children and youth, especially when used to promote foods that are high in fat, sugars, and salt, which are known to contribute to child and adolescent obesity.” The complaint specifically targets PepsiCo and Frito-Lay, focusing on promotions for Doritos®. According to the complainants, “Frito-Lay has infiltrated the lives of teens by developing covert advertising campaigns centered on things teens love—video games, music, horror, sports, contests, and social networking.” They further contend that (i) “Frito-Lay disguises its marketing campaigns as entertaining video games, concerts, and other immersive forms of entertainment, thus making it more difficult for teens to recognize them as marketing and to be skeptical about the messages they present”; (ii) “Frito-Lay claims to protect teens’…
The House Energy & Commerce Committee held a hearing on October 12, 2011, to consider “Food Marketing: Can ‘Voluntary’ Government Restrictions Improve Children’s Health?” Speaking for the committee, Chair Fred Upton (R-Mich.) concluded that an interagency working group tasked with developing standards for marketing food to children and teenagers had taken what appeared to be “a first step toward Uncle Sam planning our family meals.” Agency witnesses, such as Federal Trade Commission (FTC) Bureau of Consumer Protection Director David Vladeck, then testified that the proposed voluntary standards released in spring 2011 are undergoing “significant revisions” to allay the concerns of industry stakeholders. Among other matters, the FTC has determined that (i) “with the exception of certain in-school marketing activities, it is not necessary to encompass adolescents ages 12 to 17 within the scope of the covered marketing”; (ii) “philanthropic activities, charitable events, community programs, entertainment and sporting events, and theme parks…
Cara Wilking, a Public Health Advocacy Institute (PHAI) staff attorney, has authored an issue brief intended to provide a legal foundation for consumer protection lawsuits against food companies that advertise “unhealthy food and beverage products” to children in a manner that she describes as “pester power” marketing. She explains that such marketing “targets children who, unable to purchase products for themselves, nag, pester and beleaguer their parents into purchasing unhealthy food products for them.” Wilking’s premise is that “[p]ester power marketing tactics are similar to oppressive and unscrupulous ‘high pressure’ sales tactics,” and that parents, for a number of reasons, are unable to say “no” when their children beg for these products in public. According to Wilking, two primary legal theories can support private litigant claims and are also “applicable to actions initiated by state attorneys general to protect the public interest.” Those theories are (i) “pester power marketing as…
California residents have filed a putative class action in federal court against a company that promotes its granola, cookie and trail mix products as “100% Pure and Natural,” despite making them with some purportedly synthetic ingredients. Thurston v. Bear Naked, Inc., No. 11-4678 (N.D. Cal., filed September 21, 2011). Seeking to represent a nationwide class of consumers, the plaintiffs allege that they would not have purchased the defendant’s products at a premium price if they had known that “synthetic ingredients were used in the product.” According to the complaint, the company’s products contain cocoa processed with alkali, glycerin and lecithin. The plaintiffs allege unlawful, unfair and fraudulent business practices and false advertising under California law; violation of the Consumers Legal Remedies Act; and restitution based on quasi-contract/unjust enrichment. They seek restitution, compensatory and punitive damages, injunctive relief, attorney’s fees, costs, interest, and “[a]n order requiring an accounting for, and imposition of,…
Public health advocates from around the country have sent a letter to President Barack Obama (D) urging his administration to finalize the April 2011 proposed voluntary standards for food marketing to children. The guidelines would set limits on the amount of unhealthy fats, added sugars and sodium in foods advertised to children ages 2-17. Additional information on the proposed guidelines, which were designed by a Federal Trade Commission-led working group, can be found in Issue 392 of this Update. The September 27 letter was signed by 75 individuals claiming expertise in nutrition, marketing, medicine, and public health, including Kelly Brownell, Director of Yale University’s Rudd Center for Food Policy & Obesity; anti-tobacco attorney Richard Daynard, Director of the Public Health Advocacy Institute; Frank Hu, Professor of Nutrition and Epidemiology at the Harvard School of Public Health; Marion Nestle, New York University Professor of Nutrition and Food Studies; and Juliet Schor,…
The Federal Trade Commission (FTC) has proposed amendments to rules issued under the Children’s Online Privacy Protection Act (COPPA), which requires the owners and operators of websites intended for children younger than age 13 to obtain “verifiable consent from parents before collecting, using, or disclosing such information from children.” The amendments apparently seek to address recent changes in how children access the internet as well as innovations in social media and other online services. According to a September 15, 2011, FTC press release, the proposal would modify the COPPA rule in five areas: (i) “definitions, including the definitions of ‘personal information’ and ‘collection’”; (ii) “parental notice”; (iii) “parental consent mechanisms”; (iv) “confidentiality and security of children’s personal information”; and (v) “the role of self-regulatory ‘safe harbor’ programs.” Notably, the amendments would expand the definition of “personal information” to include “geolocation information and certain types of persistent identifiers used for functions other…
The Center on Alcohol Marketing and Youth (CAMY) has issued a report claiming that “almost 1 out of 11 radio ads for alcoholic beverages in 75 markets across the nation in 2009 failed to comply with the alcohol industry’s voluntary standard for the placement of advertising.” According to CAMY, “Approximately 9 percent of all alcohol product advertisements aired on programming with underage audiences in violation of the industry’s 30 percent standard,” thus accounting for 18 percent of youth exposure to alcohol advertising. The report also alleges that (i) 32 percent of advertising placements “occurred when proportionately more youth were listening than adults age 21 and above”; (ii) “these overexposing ads generated more than half of youth exposure to radio advertising for alcohol in 2009”; and (iii) “in 2009, girls ages 12 to 20 were more likely than boys in the same age group to be exposed to alcohol advertising for alcopops,…
A number of law professors, including anti-tobacco activist and Public Health Advocacy Institute President Richard Daynard, have written to the heads of four federal agencies, in their role as the Interagency Working Group on Food Marketed to Children, to support the group’s proposed nutrition principles for food marketed directly to children ages 2-17. Details about the proposed principles appear in Issue 392 of this Update. According to the September 6, 2011, letter, the principles “embody a constitutionally permissible set of government recommendations.” Written to counter a trade association letter that urged the group to withdraw the principles on constitutional grounds, the professors’ letter notes that the “recommended nutrition principles contain no mandates” and thus “do not violate the First Amendment.” Observing that the group “is better characterized as a routine governmental advisory body than an oppressive censorship panel,” the professors note, “no federal agency can impose legal repercussions on a…
