A California federal court has dismissed with prejudice a putative class action alleging that Hain Celestial Group Inc. mislabels its vegetable juice products as “organic” and “raw” one day before a proposed class action was filed against the company in New York federal court alleging similar claims about its baby foods and home care products. Alamilla, et al. v. Hain Celestial Group, Inc., No. 13–5595 (N.D. Cal., order entered July 2, 2014); Segedie v. The Hain Celestial Group, Inc., No. 14–5029 (S.D.N.Y., filed July 3, 2014). The California court dismissed the case based on two articles cited and incorporated into the complaint concluding that “pressurization has ‘little or no effects’ on nutritional and sensory quality aspects of foods,” which contradicted the plaintiffs’ argument that the treatment deprives the juice of nutritional value and that the company’s representations that it does not cook the juice are thus misleading. As a result of…
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A California federal court has granted motions to amend the judgment in two cases previously dismissed to accord primary jurisdiction to the U.S. Food and Drug Administration (FDA), each alleging that the defendants mislabeled their food products as including “evaporated cane juice” (ECJ) rather than the more common term, sugar. Swearingen v. Santa Cruz Natural Inc., No. 13–4291 (U.S. Dist. Ct., N.D. Cal., order entered July 1, 2014); Figy v. Amy’s Kitchen Inc., No. 13–3816 (U.S. Dist. Ct., N.D. Cal., order entered July 7, 2014). The court cited “the unique circumstances,” “the potential prejudice to plaintiff,” and “the apparent lack of prejudice to the defendant” in amending its previous decisions to dismiss the cases without prejudice rather than stay them. The plaintiffs had argued that allowing the dismissal to remain rather than issuing a stay through the end of 2014 would likely result in the loss of a year of…
Environmental groups have brought actions in state court and before the U.S. Environmental Protection Agency (EPA) seeking action to halt the use of certain insecticides that they claim are linked to the collapse of bee colonies. In California, Pesticide Action Network North America and other groups call on the state Department of Pesticide Registration to “stop approving neonicotinoid pesticides pending its completion of a comprehensive scientific review of impact to honeybees.” Pesticide Action Network N. Am. v. Cal. Dep’t of Pesticide Regulation, No. RG14731906 (Cal. Super. Ct., Alameda Cty., filed July 8, 2014). They specifically challenge the department’s June 13, 2014, decision to expand the use of two neonicotinoid insecticides while its scientific review, begun in 2009, remains pending. Claiming violations of the California Environmental Quality Act and Food and Agricultural Code, the organizations seek a stay of the decision or a writ of mandate directing the department to vacate the decision,…
Citizens of San Francisco and Berkeley will be voting on the implementation of a soda tax in the November 2014 elections. Similar taxes have failed to garner sufficient support in the past five years, with about 30 propositions introduced and none passed, including two that went to ballot and were defeated in California in 2012. Other countries have found more success with similar measures—among others, France and Mexico have each imposed taxes on sugary drinks. The San Francisco proposal, which needs a two-thirds vote to pass, would add a 2-cent-per-ounce tax on sugary drinks, excluding milk or natural fruit juice without added sugar, while the similar Berkeley proposal is 1-cent per-ounce and needs only a majority of the vote. See Associated Press, July 8, 2014. Issue 529
Following a year-long investigation of Whole Foods Markets in California, state and county weights and measures inspectors found that it was charging more than advertised for a wide variety of food items; the company has reportedly agreed to pay nearly $800,000 in penalties and to conduct its business for the next five years under strict oversight. According to the Santa Monica City Attorney’s Office, Whole Foods (i) failed to account for the weight of containers when charging for self-serve foods at the salad and hot bars, (ii) labeled foods sold by pound with higher weights than actually contained in the package, and (iii) sold items by the piece that should have been sold by the pound. Retailers bound by the judgment include those operated by Whole Foods Market California, Inc. and Mrs. Gooch’s Natural Foods Markets, Inc. The company has also agreed to appoint two “state coordinators” who will oversee…
In light of the large number of baby food products at issue and differing product labels used during the six-year class period in litigation alleging misbranding and deceptive labeling against Gerber Products Co., a federal court in California has determined that the class is not ascertainable, a flaw “fatal” to the plaintiff’s motion for class certification. Bruton v. Gerber Prods. Co., No. 12-2412 (N.D. Cal., decided June 23, 2014). Information about an earlier court ruling narrowing the claims in the case appears in Issue 511 of this Update. While the court rejected the company’s reliance on Third Circuit precedent that ruled a class is not ascertainable when purchaser records are unavailable, it did agree with uncontested evidence that consumers would be unable to reliably determine whether they are eligible to join the class. Sixty-nine products were at issue, and 66 of them were “labeled both with and without the challenged labels…
In a unanimous vote, the California Senate has voted to repeal a new provision in the health code requiring restaurant workers to wear gloves when handling food. The provision took effect in January 2014 throughout California with a compliance grace period set to end in July 2014. The measure was intended to curb foodborne illness, but restaurant industry workers petitioned to repeal the provision, arguing that hand washing is as effective as wearing gloves without the added financial or environmental cost. They also suggested that gloves would add a false sense of security because, according to a study conducted by the Centers for Disease Control and Prevention, gloved workers were less likely than ungloved workers to wash their hands when they should. Assemblyman Richard Pan (D-Sacramento), author of the bill to repeal the provision, was quoted as saying, “It is the industry standard in restaurants to prioritize cleanliness when handling food,…
A California Assembly committee has voted 8-7 against a bill (S.B. 1000), passed in May 2014 by the Senate, to require warnings on sugar sweetened beverages (SSBs) alerting consumers that “[d]rinking beverages with added sugar(s) contributes to obesity, diabetes, and tooth decay.” Those on the Assembly Health Committee opposing the measure were apparently concerned that it singled out a single industry and children would not necessarily read the label. Industry advocates reportedly called the proposal unfair, because it would have required warnings on SSBs containing 75 calories while allowing higher calorie foods to be sold without them. Bill sponsor Sen. Bill Monning (D-Carmel), who also introduced unsuccessful legislation that would have imposed a tax on soft drinks, was quoted as saying, “I remain committed to pursuing this issue and being part of a broad public health campaign to educate communities about the proven health risks of sugary drinks.” See Reuters,…
A federal court in California has denied the motion to dismiss filed by The Hain Celestial Group in four consolidated putative class actions alleging that the company deceives consumers by labeling and promoting 10 of its Celestial Seasonings® teas as “100% Natural” when they contain chemical insecticides, fungicides and herbicides. Von Slomski v. The Hain Celestial Group, Inc., No. 13-1757 (C.D. Cal., order entered June 10, 2014). So ruling, the court disagreed that the plaintiffs failed to state a claim or lacked standing, or that the litigation should be dismissed under the primary jurisdiction doctrine. The company challenged the Eurofins test on which the plaintiffs rely to support their claim that the teas contain “significant levels” of man-made, chemical pesticides. According to the defendant, the plaintiffs failed to provide details about the testing, and the study “was published by ‘an admittedly biased short-seller that admits that it issued the report…
According to a news source, the Irwindale City Council has decided to drop its public-nuisance declaration and lawsuit against Huy Fong Foods, the California-based company that makes the popular Sriracha hot sauce. Information about the dispute appears in Issue 520 of this Update. The company had asked for more time to address the odors emitted from its facility; residents had complained about burning throats and eyes since the hot sauce maker moved its main operation to Irwindale in 2013. Council’s vote was reportedly taken behind closed doors after a meeting with company CEO David Tran and representatives from the governor’s Business and Economic Development Office. Tran has indicated that better filters have been installed and should block fumes during the chili-grinding season that begins in August. See AP, May 29, 2014. Issue 525
