A New York state appellate court has affirmed a lower court’s ruling dismissing a lawsuit against a local Fox TV station that investigated and reported on the allegedly false health claims of D’Lites ice cream in two stores. Prince v. Fox Television Stations Inc., No. 107129/2011 (N.Y. App. Div., 1st Dept., order entered March 8, 2016). The eight-minute “Shame Shame Shame” report informed viewers that the nutritional information advertised for a small serving did not correlate to the nutritional information of the ice cream served by two New Jersey stores; the owner of a D’Lites store—not one involved in the report—sued the station for libel. A lower court then dismissed the lawsuit; details appear in Issue 524 of this Update. “To the extent that there were purported discrepancies in the measurements of sugar and carbohydrates in the test results of the samples sold in stores, plaintiff does not dispute that…
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The Canadian Standing Senate Committee on Social Affairs, Science and Technology has issued a “groundbreaking” report on obesity that calls for a tax on sugar- and artificially-sweetened beverages as well as a ban on advertising food and drink to children. Titled Obesity in Canada: A Whole-of-Society Approach for a Healthier Canada, the March 2016 report also recommends, among other things, (i) “a National Campaign to Combat Obesity,” (ii) “a complete revision of Canada’s food guide to better reflect scientific evidence,” (iii) “a review of nutrition food labelling to make it easier to understand,” and (iv) “a plan for making healthy food more affordable.” “Canada’s dated food guide is no longer effective in providing nutritional guidance to Canadians. Fruit juice, for instance, is presented as a healthy item when it is little more than a soft drink without the bubbles,” notes the report, which summarizes expert testimony given before the committee…
A consumer has filed a putative class action against Carrington Tea Co. alleging the company advertises its coconut oil as “a healthy alternative to butter and various cooking oils, despite that coconut oil is actually inherently unhealthy, and a less healthy option to these alternatives.” Boulton v. Carrington Tea Co., No. B609360 (Cal. Super. Ct., Los Angeles Cty., filed February 4, 2016). Coconut oil “is approximately 90 percent saturated fat” and “increases the risk of [coronary heart disease] and stroke” as well as other negative health effects, the complaint asserts. Despite these effects, the plaintiff argues, Carrington markets its coconut oil as healthy, and further, “Carrington’s labeling claims are designed to conceal or distract consumers from noticing that its Carrington Farms coconut oils are pure fat” by including the phrase “Healthy Foods for a Healthy Soul” and claiming that “Carrington Farm’s cold-pressed organic extra virgin coconut oil is the most…
A California federal court has dismissed a lawsuit against Chipotle Mexican Grill Inc. alleging the company falsely advertises its food as free of genetically modified organisms (GMOs) despite selling meat and dairy produced from animals fed GMO products as well as soft drinks manufactured with GMO corn syrup. Gallagher v. Chipotle Mexican Grill, Inc., No. 15-3952 (N.D. Cal., order entered February 5, 2016). The plaintiff had failed to plausibly plead her allegations, the court found, because she failed to specify which products she purchased. Accordingly, the court granted Chipotle’s motion to dismiss but allowed the plaintiff leave to amend. Additional information about the complaint appears in Issue 577 of this Update. Meanwhile, a jury ordered Chipotle to pay $351,936 in back pay and $255,000 in punitive damages to three female former managers at restaurants near Cincinnati, Ohio, over allegations of gender discrimination. Rogers v. Chipotle Mexican Grill Inc., No. 13-0146…
The Association of National Advertisers, Inc. (ANA) has filed an amicus brief in a case challenging San Francisco’s health code provisions requiring advertisements on sugar-sweetened beverages (SSBs) notifying the public of alleged health risks associated with SSB consumption. Am. Beverage Ass’n v. City of San Francisco, No. 15-3415 (N.D. Cal., amicus brief filed January 22, 2016). The brief focuses on First Amendment arguments against requiring private parties to include government speech on their product labels. “The City of San Francisco’s imposition of the Warning Mandate in reaction to potential over-consumption of sugar-sweetened beverages by its citizens, whatever the merits of that concern, takes regulatory Nannyism to new levels and is wholly incompatible with First Amendment protections afforded to commercial speech,” the brief argues. “If this Court were to uphold the Board of Supervisors’ conscription of sugar-sweetened beverage ads to convey government views on health issues there would be virtually no limit to…
A California federal court has dismissed a lawsuit brought by People for the Ethical Treatment of Animals Inc. (PETA) alleging Whole Foods Market Inc. falsely advertises its meat as ethically slaughtered. PETA v. Whole Foods Mkt., Inc., No. 15-4301 (N.D. Cal., order entered January 29, 2016). The organization challenged Whole Foods’ five-step Global Animal Partnership rating as misleading consumers because the assessments are allegedly insufficient. Details on PETA’s complaint appear in Issue 579 of this Update. The court first found that PETA had standing to sue despite the organization’s not being a customer of Whole Foods. The court then turned to Whole Foods’ argument that PETA failed to plead its fraud allegations with the specificity required. The photos included with the complaint were insufficient to fulfill the requirement, the court found, because PETA did not clarify which aspects of the in-store displays were at issue. That vagueness also prevented the court…
A consumer has filed a putative class action against Quorn Foods, Inc. alleging the term “mycoprotein,” which the company uses in its advertising, implies the product is “the same or substantially similar to a mushroom, truffle or morel” but Quorn products “are actually made of mold.” Birbrower v. Quorn Foods, Inc., No. 608107 (Cal. Super. Ct., Los Angeles Cty., C. Dist., complaint filed January 22, 2016). The complaint argues that Quorn labels misrepresent “mycoprotein,” specifically citing the packaging claim that “Quorn [products] are made with mycoprotein (‘myco’ is Greek for ‘fungi’) and are completely meatless and soy-free. There are believed to be over 600,000 varieties of fungi in the world, many of which are among the most sought after foods like varieties of mushroom, truffles, and morels.” The plaintiff alleges violations of California consumer-protection statutes and fraud, and she seeks an injunction, implementation of product labels that state that “this…
The Association of National Advertisers, Inc. (ANA) has filed an amicus brief in a case challenging San Francisco’s health code provisions requiring advertisements on sugar-sweetened beverages (SSBs) to notify the public of alleged health risks associated with SSB consumption. Am. Beverage Ass’n v. City of San Francisco, No. 15-3415 (N.D. Cal., San Francisco Div., amicus brief filed January 22, 2016). The brief focuses on First Amendment arguments against requiring private parties to include government speech on their product labels. “The City of San Francisco’s imposition of the Warning Mandate in reaction to potential over-consumption of sugar-sweetened beverages by its citizens, whatever the merits of that concern, takes regulatory Nannyism to new levels and is wholly incompatible with First Amendment protections afforded to commercial speech,” the brief argues. “If this Court were to uphold the Board of Supervisors’ conscription of sugar-sweetened beverage ads to convey government views on health issues there…
Chobani has filed a lawsuit seeking a declaratory judgment that its advertisements claiming competitor Dannon’s yogurt contains chlorine are not false or misleading, prompting Dannon to file a counterclaim seeking a preliminary injunction. Chobani v. The Dannon Co., Inc., No. 16-0030 (N.D.N.Y., complaint filed January 8, 2016, counterclaim filed January 11, 2016). Chobani’s complaint details its campaign, launched January 6, 2016, that asserts “Dannon’s Light & Fit Greek Yogurt contains sucralose, an artificial sweetener processed with added chlorine.” The company seeks a declaration that its claims are not false, misleading, disparaging or deceptive under the Lanham Act or New York state law. Dannon’s response argues that the ad campaign “has been misinforming consumers about the health and safety of Dannon’s products while exaggerating the relative health benefits of its own product.” The counterclaim defends sucralose and its use, arguing that it “is not ‘bad’ or harmful.” Further, “Chobani’s campaign falsely…
A New York federal court has denied Fifth Generation, Inc.’s motion to dismiss a lawsuit arguing that its Tito’s Handmade Vodka® is falsely advertised as handmade because machines are used in the process of manufacturing the product. Singleton v. Fifth Generation, Inc., No. 15-0474 (N.D.N.Y., order entered January 12, 2016). The court rejected the company’s claim that its adherence to U.S. Alcohol and Tobacco Tax and Trade Bureau standards does not relieve it from liability for false advertising claims. Further, the court found that “Tito’s labels could plausibly mislead a reasonable consumer to believe that its vodka is made in a hands-on, small-batch process, when it is allegedly mass-produced in a highly-automated one.” Accordingly, the court allowed several claims to continue, but dismissed allegations of breach of express warranties and negligent misrepresentation. The decision echoes a November 2015 ruling from a California federal court, which also refused to find that the safe harbor provision excused Fifth Generation from liability. Hofmann v. Fifth…
