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Seeking to represent a class of California children younger than age 8 and their parents, the mother of a 6-year-old girl has reportedly filed a putative class action against McDonald’s Corp., alleging that it baits children by advertising its “unhealthy Happy Meals” with toys and thus “has helped create, and continues to exacerbate, a super-sized health crisis in California.” Parham v. McDonald’s Corp., No. __ (Cal. Super. Ct., San Francisco Cty., filed December 15, 2010). Counsel for the plaintiff includes Stephen Gardner with the Center for Science in the Public Interest (CSPI), which announced several months ago that it would be filing such a lawsuit. According to the complaint, “Most Happy Meals are too high in calories, saturated fat, and sodium to be healthful for very young children,” and the company “is engaged in a highly sophisticated scheme to use the bait of toys to exploit children’s developmental immaturity and…

The Federal Trade Commission has announced the settlement of allegations that The Dannon Co. exaggerated the health benefits of its Activia® yogurt and DanActive® dairy beverage. Under the terms of the settlement, Dannon does not admit any law violations, but agrees to stop promoting its yogurt as a product that relieves temporary irregularity or its dairy beverage as a product that reduces the likelihood of getting a cold or the flu, unless certain conditions are met. These include that the immunity claims are specifically permitted by the Food and Drug Administration and the irregularity claims are substantiated by competent and reliable scientific evidence. The company also agreed to pay $21 million to the 39 states whose attorneys general were also investigating its advertising claims. According to a news source, Dannon has indicated that it will in the future clarify that Activia’s benefits require three servings of the product daily. The…

Yale University’s Rudd Center for Food Policy and Obesity has released a new international database designed to track company pledges to limit food marketing to children. The database currently features 16 pledges: (i) three specific to the soft-drink industry; (ii) one specific to the food industry; and (iii) 12 applicable to the entire food industry. The pledges covered to date include the Council for Better Business Bureaus’ Children’s Food and Beverage Advertising Initiative (CFBAI), as well as agreements that are either international in scope or based in Australia, Brazil, Canada, European Union, India, Mexico, Russia, South Africa, or Thailand. The site breaks down each pledge according to “key criteria that define specific restrictions on marketing communications to children, including the definition of ‘children’ (age), the marketing directed at them (audience definition), the communications channels (ex. television, internet, etc.), marketing methods (ex. advertising using licensed characters, advertising using promotional materials, etc.)…

Two Missouri residents with arthritis and allergies have filed a putative class action on behalf of Missouri, Illinois and Kansas consumers who were allegedly deceived by false health-related claims made by a company that sells elderberry juice. Delling v. Wyldewood Cellars, Inc., No. 10-02287 (E.D. Mo., filed December 6, 2010). The complaint also names a retailer as a defendant. The plaintiffs contend that they read an advertisement stating that elderberry juice “prevents colds, flu, viruses, asthma, allergies, diabetes, arthritis & more!” When they went to the store to further evaluate the product, they allegedly read customer and “physician” testimonials about the curative properties of elderberry juice and decided to purchase the product. According to the plaintiffs, they used the product “but failed to realize any health benefits and certainly did not see any abatement in their allergy or arthritis problems.” The plaintiffs allege one count of consumer fraud and seek…

A California resident has filed a putative class action against Dr. Pepper Snapple Group, Inc., in federal court, alleging that the company has violated consumer protection laws in labeling and promoting its “Snapple® Acai Mixed Berry Red Tea Immunity” product because “no known clinical study . . . adequately supports Snapple’s claims.” Meaunrit v. Dr. Pepper Snapple Group, LLC, No. 10-5153 (N.D. Cal., filed November 12, 2010). Seeking to certify a class of all product purchasers, the named plaintiff alleges violations of California’s Unfair Competition Law, False Advertising Law and Consumer Legal Remedies Act, as well as breach of express warranty. She asks for restitution, disgorgement, damages, and attorney’s fees and costs in excess of $5 million. Plaintiff Julia Meaunrit and her counsel, Florida-licensed Howard Rubinstein, previously filed an unsuccessful class-action lawsuit in California against a food company alleging inadequate cooking instructions for its frozen pot pies. Details about that…

The Federal Trade Commission (FTC) has filed a motion to dismiss a complaint charging the agency with exceeding its authority in requiring Food and Drug Administration (FDA) pre-approval for health-related claims on food products, violating advertisers’ constitutional rights by requiring compliance with these standards and failing to comply with notice-and-comment rulemaking procedures in establishing the standards. POM Wonderful LLC v. FTC, No. 10-1539 (D.D.C., motion filed November 16, 2010). Additional information about POM Wonderful’s complaint appears in Issue 364 of this Update. FTC contends that the court lacks jurisdiction to consider the matter because the complaint is moot, the company lacks standing, the company is attempting to preclude an enforcement action, and the complaint does not challenge final agency action. Specifically, FTC claims (i) the agency merely created a possible remedy of FDA pre-approval in consent agreements with food producers making health-related claims and not an enforceable rule; (ii) it…

San Francisco Mayor Gavin Newsom (D) has reportedly vetoed an ordinance that would have prohibited restaurants from offering toy giveaways in children’s meals deemed too high in calories, salt or fat. Approved in an 8-to-3 vote on November 2, 2010, by the city’s Board of Supervisors, the ordinance has the minimum amount of support needed to override the veto, an action which apparently has not yet been scheduled. The ordinance was discussed in Issue 371 of this Update. Announcing the veto on November 12, Newsom called the legislation an “intrusive and ineffective approach” to combat childhood obesity. “Parents, not politicians, should decide what their children eat, especially when it comes to spending their own money,” he said in a statement. “Despite its good intentions, I cannot support this unwise and unprecedented government intrusion into parental responsibilities and private choices.” According to the California Restaurant Association, the legislation may face a…

The Federal Trade Commission (FTC) has announced the unanimous approval of a final order settling charges that a former POM Wonderful LLC executive made false and unsubstantiated claims that the company’s pomegranate products prevent or treat heart disease and prostate cancer. Under the agreement, Mark Dreher, a former POM Wonderful vice president, does not admit to violations of the law, but will cooperate in FTC’s investigation and action against his former company. He also agreed to abide by the conditions prescribed for making any health-related claims for a food or drug product in the future and to give present and future employees copies of the order. According to a news source, FTC has scheduled a May 24, 2011, hearing before an administrative law judge for POM Wonderful to respond to charges that it has made allegedly false health-related product claims. Dreher has agreed to participate in interviews with the agency in…

“Americans now eat an average of 33 pounds of cheese a year, nearly triple the 1970 rate,” writes New York Times investigative reporter Michael Moss in this article about Dairy Management Inc., a U.S. Department of Agriculture (USDA) “marketing creation” with a $140 million annual budget “largely financed by a government-mandated fee on the dairy industry.” According to Moss, “The organization’s activities, revealed through interviews and records, provide a stark example of inherent conflicts in the Agriculture Department’s historical roles as both marketer of agriculture products and America’s nutrition police.” Moss claims that despite federal efforts to curb the consumption of saturated fats, Dairy Management has “worked with restaurants to expand their menus with cheese-laden products,” in addition to spending “millions of dollars on research to support a national advertising campaign promoting the notion that people could lose weight by consuming more dairy products.” His exposé opines that the group’s…

Yale University’s Rudd Center for Food Policy & Obesity has issued a November 2010 report claiming that “children as young as age 2 are seeing more fast food ads than ever before.” Titled Fast Food F.A.C.T.S.: Food Advertising to Children and Teens Score, the report purportedly evaluated “the marketing efforts of 12 of the nation’s largest fast food chains, and examined the calories, fat, sugar and sodium in more than 3,000 kids’ meal combinations and 2,781 menu items.” According to a concurrent press release, researchers relied on syndicated data from The Nielsen Company, comScore, Inc., and Arbitron Inc. to determine “that the fast food industry spent more than $4.2 billion on marketing and advertising in 2009, focusing extensively on television, the Internet, social media sites and mobile applications.” Among its key findings, the study claims that (i) “Unhealthy foods and beverages still dominate restaurant menus”; (ii) “The restaurant environment does not…

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