The U.S. Court of Appeals for the Second Circuit has affirmed a lower court’s dismissal of a lawsuit against Kellogg Co. alleging the company owed a man compensation after it implemented an idea for a portable breakfast the man had submitted through the company’s online portal for innovative ideas. Wilson v. Kellogg Co., No. 15-2237 (2nd Cir., order entered January 13, 2016). The man submitted an idea for a beverage flavored like cereal milk, but Kellogg apparently told him it was not interested in pursuing the idea. The company later obtained a trademark for “Kellogg’s Breakfast to Go” and began selling a similar product under the name in 2013. The man sought compensation for the idea, but Kellogg argued that the terms and conditions the man had agreed to upon submission limited his ability to recover any money for a successful submission. The Second Circuit agreed, finding that the terms…
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Whole Oats Enterprises, a partnership of musicians Daryl Hall and John Oates, has filed a lawsuit against Early Bird Foods & Co. alleging that the name of the company’s “Haulin’ Oats” granola product infringes on their trademarks. Whole Oats Enters. v. Early Bird Foods & Co., No. 15-1124 (E.D.N.Y., filed March 4, 2015). The musicians own the registered trademark in “Daryl Hall and John Oates” and assert common law trademark rights to “Hall & Oates,” which the group often calls itself. Early Bird’s “Haulin’ Oats,” a granola product containing rolled oats and maple syrup, is an “obvious” “phonetic play” on the band name, the complaint alleges. The complaint also details a 2014 attempt at the use of “Haulin’ Oats” by a Tennessee company selling oatmeal and food-delivery services. The company assigned its rights to “Haulin’ Oats” to Whole Oats, which then licensed the name back to the company in exchange for royalties.…
A Michigan federal court has denied The International Group Inc.’s (IGI’s) motion for summary judgment in a case alleging that the waxmaker and FPC Flexible Packaging Corp. provided Kellogg with non-merchantable cereal bags. Kellogg Co. v. FPC Flexible Packaging Corp., No. 11-272 (W.D. Mich., order entered September 30, 2014). IGI supplied wax to FPC, which used it to construct cereal bags sold to Kellogg. The bags were then used as liners in boxes of Corn Pops, Froot Loops, Apple Jacks, and Honey Smacks, and after consumers complained of nausea and diarrhea, Kellogg destroyed its inventory of the cereals and issued vouchers to consumers who had already purchased boxes. After ruling that Canadian law applied, the court assessed the contract between FPC and IGI, determining when it began, what terms were implicit and what warranties existed as a result. “Questions of fact exist as to whether the wax was merchantable,” the…
The U.K. Advertising Standards Authority (ASA) has upheld complaints against a TV commercial claiming that Kellogg’s “Special K Multi Grain Porridge” contained “30% less fat than other porridges.” According to ASA, which received complaints from PepsiCo Inc. and 14 other competitors, Kellogg Marketing and Sales Co. (UK) Ltd. argued that the advertisement’s reduced-fat comparative claim complied with the Annex to EC Regulation 1924/2006 on Nutrition and Health Claims Made on Food. To this end, Kellogg provided ASA and Clearcast with the data and methods used to conduct product comparisons under this regulation. The company reportedly explained that all varieties of Special K porridges contained 5.5 percent fat or less, whereas the top 75 percent of porridge products on the market contained an average fat content of 7.84 percent. “Kellogg also pointed out than none of the products included in the comparison had a fat content of 5.5% or less,” noted…
A Michigan federal court has denied a motion filed by FPC Flexible Packaging Corp. and The International Group, Inc. to dismiss evidence for spoliation in a case accusing the packaging company and the wax maker of providing Kellogg defective cereal liners, resulting in a $70 million recall. Kellogg Co. v. FPC Flexible Packaging Corp., No. 11-272 (U.S. Dist. Ct., W.D. Mich., S. Div., order entered August 12, 2014). Kellogg allegedly received several consumer complaints of unusual odors in its products, and the company said it obtained samples of products from two of the consumers. The cereal samples have since disappeared, but Kellogg preserved a piece of the plastic liner provided by one of the consumers. International and FPC argued that the loss of evidence could not have been accidental because Kellogg managed to keep the sample of the liner, but the court dismissed their arguments. “An appropriate jury instruction addressing the use…
A plaintiff has accused cereal company Organic Milling of mislabeling its Nutritious Living Hi-Lo brand cereals as “100% natural” despite allegedly containing synthetic and heavily processed ingredients and being produced with genetically modified (GM) crops. Mirto v. Organic Milling, No. BC553780 (Super. Ct. Cal., Los Angeles Cty., filed Aug. 5, 2014). The complaint alleges first that the use of GM crops in the cereal’s production precludes the company from using the phrase “100% natural” on its marketing materials, citing definitions from the World Health Organization and Environmental Protection Agency to argue that “GM crops are not ‘natural,’ and products made from these crops, including [Organic Milling’s products], are not ‘100% natural.’” The complaint further argues that Organic Milling’s use of canola oil in Hi-Lo cereal is not “100% natural” either because of the heavy processing required to produce the oil. The plaintiff also objects to the use of emulsifier soy…
The U.K. Advertising Standards Authority (ASA) has dismissed a complaint alleging that a cereal advertisement shown at the beginning of a “U-rated” film “condoned or encouraged poor nutritional habits or an unhealthy lifestyle in children” and “disparaged good dietary practice.” Although Kellogg Marketing and Sales Company (UK) Ltd. included on-screen text stating the sugar content of the product and emphasizing the importance of a varied diet and lifestyle, ASA argued that the Coco Pops Rocks ad in question, which featured brand equity characters and aired before a movie, would appeal to children, “who would not have the reading comprehension skills or relevant knowledge to be able to interpret and understand the information about the sugar content of the product and that it should be eaten as part of a varied diet and active lifestyle.” “We also considered that, in the context of the exciting action in the visuals of the ad,…
Researchers with Cornell University and the Yale Rudd Center for Food Policy and Obesity have reportedly found that eye contact with cereal box spokes-characters “increased feelings of trust and connection to the brand, as well as choice of the brand over competitors.” Aviva Musicus, et al., “Eyes in the Aisles: Why is Cap’n Crunch Looking Down at My Child?,” Environment and Behavior, 2014. After analyzing 65 cereals in 10 grocery stores, the study’s authors claimed that cereals marketed to children were generally placed on the bottom two shelves and displayed characters featuring “a downward gaze at an angle of 9.67 degrees,” while those marketed to adults were generally placed on the top two shelves and displayed characters featuring a slightly upward gaze at an angle of 0.43 degrees. In addition, the study reported that participants asked to evaluate sample cereal boxes were more likely to choose one brand over another…
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…
A federal court in California has preliminarily approved the settlement of class claims that Quaker Oats violated consumer protection laws by labeling its snack bars and instant cereal products as “wholesome” with “0g Trans Fat” when they actually contain “unhealthy” ingredients, such as partially hydrogenated vegetable oils (PHOs). In re Quaker Oats Labeling Litig., No. 10-0502 (N.D. Cal., San Francisco Div., order entered February 12, 2014). Under the proposed settlement, Quaker Oats, which admits no wrongdoing, has agreed to remove PHOs from products that contain them by December 31, 2015, and will not reintroduce PHOs into these products for 10 years. The company has also agreed to not introduce PHOs into products such as Quaker Chewy bars or Instant Quaker Oatmeal products that do not contain them for 10 years, and, by December 31, 2014, will cease stating on product labels “contains a dietarily insignificant amount of trans fat” for…
