An Arizona federal court has granted the U.S. Federal Trade Commission's (FTC's) request to temporarily shut down "Success By Health," an alleged pyramid scheme premised on the sale of instant coffee. The coffee, "MycoCafe," is touted as containing health benefits from mushrooms. "However, the FTC alleges that selling the product to coffee drinkers took a back seat to recruiting more affiliates," according to an agency press release. "The complaint alleges that when affiliates did try to sell the product to other consumers, they found themselves in competition with the company itself. Success By Health sells its products directly to the public for the same 'wholesale' price paid by affiliates, severely limiting affiliates’ ability to follow the defendants’ instructions to apply a 50 percent 'markup' before selling to the public."
Tag Archives Arizona
An Arizona woman has sued Red Lobster Hospitality alleging that she contracted E. coli from eating a salad at a Red Lobster in Phoenix. Styles v. Red Lobster Hospitality, LLC, No. 18-1361 (D. Ariz., filed May 1, 2018). The plaintiff alleged she ate the salad, which contained romaine lettuce, on March 23, 2018, and became ill around March 29, 2018. After she was hospitalized, she tested positive for E. coli O157:H7 bacteria, which has been linked to an outbreak of E. coli from romaine lettuce grown near Yuma, Arizona. Claiming breach of warranty, strict liability and negligence, the plaintiff seeks damages and attorney’s fees. A similar lawsuit was filed against Panera Bread Co. in April 2018.
Days after the U.S. Federal Trade Commission (FTC) filed a lawsuit to enjoin Gerber Products Co. from claiming that its Good Start® Gentle infant formula helps reduce allergies in children, a consumer filed a putative class action in Arizona federal court alleging the same facts. Werthe v. Gerber Prods. Co., No. 14-8216 (D. Ariz., filed November 3, 2014). Additional information about FTC’s lawsuit against Gerber appears in Issue 543 of this Update. Like the FTC complaint, the consumer action alleges that Gerber advertises the partially hydrolyzed whey protein (PHWP) in its Good Start® Gentle formula as reducing the risk of atopic dermatitis in infants. As a result, Gerbercharges “a significant premium” over other infant formulas, the plaintiff asserts. The complaint cites Gerber’s labeling, which allegedly promises thatits product is the “1st & Only Routine Formula to Reduce the Risk of Developing Allergies” and that it “Meets FDA [U.S. Food and Drug…
An Arizona federal court has preliminarily approved a settlement in a lawsuit alleging that Bashas’ Inc. paid Hispanic workers less than comparable non-Hispanic workers from 1998 to 2007 in violation of Title VII of the Civil Rights Act of 1964. Parra v. Bashas’ Inc., No. 2-591 (D. Ariz., order entered October 21, 2014). The plaintiffs were employees at Bashas’ Inc.’s Food City stores, which cater mostly to Hispanic customers and whose staff was about 75 percent Hispanic. They alleged that they were paid on a lower pay scale than the mostly white employees at Bashas’ Inc.’s A.J. Fine Foods and Bashas’ stores. According to the plaintiffs, Bashas’ Inc.’s president personally set the pay scale each year, and an experienced Food City store clerk was allegedly paid $0.82 per hour less than a comparable Bashas’ store clerk in 1999—amounting to a loss of about $1,640 per year for a full-time employee. Under…
An outbreak of hepatitis A linked to frozen berry and pomegranate mixes sold in eight states has reportedly sickened 87 consumers to date and spawned at least three putative class actions seeking compensation for hepatitis A testing and vaccination. According to media reports, residents in Arizona, California and Nevada filed lawsuits after the Colorado Department of Public Health and Environment advised all consumers exposed to the allegedly contaminated berries to request hepatitis A vaccination or immune globulin injections to reduce their risk of contracting the disease. In addition to the costs of vaccination, the complaints against Townsend Farms Corp. are seeking compensation for time missed from work as well as other expenses related to the outbreak. See Law360, June 3, 2013; NBC News, June 11, 2013; KTAR, June 12, 2013; KRNV & MyNews4.com, June 13, 2013.
Arizona Governor Jan Brewer (R) has reportedly proposed levying a $50 annual fee on smokers, the chronically ill or obese who receive aid from the state’s financially strapped Medicaid program. Effective October 1, 2011, if approved by the Arizona Legislature, the plan would apply to childless adults who “need to work with their primary care physician to develop a care plan.” According to news sources, the measure is part of a wider plan to help the state save $510 million. “If you want to smoke, go for it,” a spokesperson for Arizona’s Medicaid program was quoted as saying. “But understand you’re going to have to contribute something for the cost of the care of your smoking.” State Senator Kyrsten Sinema (D-Phoenix) asserted that she would vote against the measure because it would unfairly penalize the obese. “If someone is obese because they’re severely disabled or can’t exercise, we shouldn’t be…
The Arizona House of Representatives Commerce Committee has reportedly approved a bill (H.B. 2490) that would block cities and counties from enacting laws that would prohibit restaurants, food establishments or convenience stores from offering “consumer incentive items” with meals. Scheduled to go before the House for a full vote, the law identifies the items as “any licensed media character, toy, game, trading card, contest, point accumulation, club membership, admission ticket, token, code or password for digital access, coupon, voucher, incentive, crayons, coloring placemats or other premium or prize or consumer product.” Telling a news source that “government needs to stay out of the way of free enterprise,” Representative Jim Weiers (R-Glendale) challenged arguments that toy giveaways tied with high-fat, high-calorie meals contributed to childhood obesity. “Ask the parents who are supposed to be ultimately responsible,” he said. But House Minority Leader Chad Campbell (D-Phoenix) asserted that the issue should be…
