The Supreme Court of Ireland has held that Subway's breads are subject to value-added tax (VAT) because they contain too much sugar to be considered a staple product. Under the country's VAT law, bread can contain up to 2% sugar in the flour to be classified as a staple product exempt from the tax; Subway's breads contain about 10% sugar in the flour for both the white and wholegrain varieties. Following the ruling, the breads will be taxed at 13.5% under the law. The Irish court reached the ruling following a challenge by a Subway franchisee alleging it should not have to pay the VAT.
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A woman has filed a putative class action alleging that FGF Brands (USA) Inc. misleads consumers by falsely marketing Stonefire Naan as baked in a tandoor oven. Friend v. FGF Brands (USA) Inc., No. 18-7644 (N.D. Ill., E. Div., filed November 16, 2018). Naan requires a "labor-intensive cooking process," the complaint asserts, and the plaintiff "believed that the Mislabeled Naan was baked in a tandoor oven, in small batches by hand, and did not involve the conventional, automated, and commercial methods of baking bread." The complaint cites FGF's patents, which purportedly show that the naan "is mass produced on a conveyor belt in a gas-heated commercial oven designed by Defendants to overcome the impracticalities of using a tandoor oven to mass-produce products." The plaintiff alleges violations of Illinois consumer-protection law along with fraudulent concealment and unjust enrichment, and she seeks class certification, corrective advertising, restitution, attorney's fees and damages.
A French bakery owner who opened his storefront seven days a week to accommodate tourist crowds has reportedly been fined €3,000 for violating a regional law mandating that bakeries close at least one day each week. Cédric Vaivre, owner of Boulangerie du Lac, operates the only bakery in his Aube town; during previous summers, he received an exemption to Aube’s prefectural decree allowing him to stay open all week but did not obtain similar permission in 2017. Christian Branle, mayor of Vaivre's town, reportedly told local newspaper L’Est éclair, “In a tourist area, it seems essential that we can have a business open every day during the summer. There is nothing worse than closed shops when there are tourists.” An Aube official reportedly told Vaivre his only solution is to open a second bakery.
Italian police have reportedly arrested 24 people in an operation targeting the Lo Russo crime syndicate in connection with a scheme to intimidate grocers and supermarkets in Naples into buying bread at prices considerably higher than the market standard. The police also seized three bakeries allegedly identified as Lo Russo-controlled. The crime group reportedly forced merchants to buy the bread or risk seeing their shops burned or damaged in other ways. Lieutenant Colonel Giuseppe Furciniti, commander of the organized crime unit in Naples of the national financial police corps, said the scheme was common for the group, noting, “This time it was bread, other times it has been buffalo mozzarella.” See Associated Press, June 27, 2016. Issue 610
Great Harvest Franchising, Inc. and two franchisees of Great Harvest Bread Co. have filed a lawsuit against Panera Bread Co., alleging the company has been using a tagline—“Food as it should be”—that infringes on Great Harvest’s trademarked slogan, “Bread. The way it ought to be.” Great Harvest Franchising, Inc. v. Panera Bread Co., No. 16-0121 (W.D.N.C., Charlotte Div., filed March 10, 2016). Great Harvest established its tagline in October 2014 and registered the mark in December 2015, and it alleges that Panera began using its similar slogan in July 2015. The plaintiffs seek an injunction, destruction of infringing materials and damages for allegations of unfair competition, trademark infringement and false designation of origin. Issue 597
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…
A New Jersey federal court has dismissed putative class actions against Whole Foods Market Group Inc., Wegmans Food Markets Inc. and Acme Markets Inc. alleging that they misrepresented their bread products as “freshly baked” or “baked in-store” despite actually being frozen, processed or baked elsewhere. Mladenov v. Wegmans Food Mkts. Inc., No. 15-0373 (D.N.J., order entered August 26, 2015); Mladenov v. Whole Foods Mkt. Grp. Inc., No. 15-0382 (D.N.J., order entered August 26, 2015); Mao v. Acme Markets Inc., No. 15-0618 (D.N.J., order entered August 26, 2015). Additional information about the three complaints appears in Issue 549 of this Update. The court found holes in each of the plaintiffs’ amended complaints, noting that they lacked “any detail as to what Plaintiffs purchased, the cost of these items, and the supposed value of what they received,” which are necessary to a price-premium claim. “Nowhere in their complaints or opposition do Plaintiffs…
A California federal court has dismissed the claims in a putative class action alleging that Flowers Bakeries misrepresents its Nature’s Own® bread as natural, healthy and wholesome despite containing synthetic ingredients, including azodicarbonamide, the “yoga mat chemical.” Romero v. Flowers Bakeries, No. 14-5189 (N.D. Cal., San Jose Div., order entered May 6, 2015). The plaintiffs argued that the brand name “Nature’s Own,” pictures of “stalks of wheat and pots of honey” and statements such as “no artificial preservatives, colors and flavors” on the packaging of the products misleads consumers into believing that the products are “a natural food product, therefore connoting that [the products] are somehow more healthy and wholesome.” The court found deficiencies in the plaintiff’s complaint, noting that she failed to clarify which misrepresentation allegations applied to which products. “It is not the task of the Court or of Defendant to diagram the intersection between the challenged products…
Three consumers have filed three separate putative class actions against Whole Foods Inc., Wegmans Food Markets Inc. and Acme Markets Inc. in New Jersey state court alleging that the grocery chains falsely represent their bread and bakery products as freshly made in-store. Mladenov v. Whole Foods, docket number unavailable (Super. Ct. N.J., Camden Cty., filed December 16, 2014); Mladenov v. Wegmans Foods Mkts., Inc., docket number unavailable (Super. Ct. N.J., Camden Cty., filed December 16, 2014); Mao v. Acme Mkts., Inc., docket number unavailable (Super. Ct. N.J., Camden Cty., filed December 16, 2014). The complaints allege violations of the New Jersey Consumer Fraud Act based on advertisements indicating that the bread and bakery products sold by the three companies were made in-store daily despite being “frozen, delivered to its stores, and then re-baked or partially baked in store,” according to the complaint against Acme. Each plaintiff seeks class certification, injunctive…
A recent study has reportedly concluded that cereal and bread are major sources of dietary salt intake for children and adolescents in the United Kingdom. Naomi Marrero, et al., “Salt Intake of Children and Adolescents in South London: Consumption Levels and Dietary Sources,” Hypertension, March 2014. After analyzing the urinary sodium levels of 340 children ages 5 to 17, researchers reported that 70 percent of all participants consumed more salt than the maximum recommended amount for their age group. In particular, the results purportedly showed that “salt intake increased with age and was also higher in boys than in girls for the 5- to 6- and 13- to 17-year age groups.” With 66 percent of the 5- to 6-year-olds, 73 percent of the 8- to 9-year-olds, and 73 percent of the 13- to 17-year-olds exceeding daily salt recommendations, the researchers also noted that cereal and cereal products contributed 36 percent…
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