Mondelez Canada Inc. has filed a lawsuit in California federal court alleging Stoney Patch cannabis-infused gummies infringe the trademark and trade dress of Sour Patch gummy candies. Mondelez Canada Inc. v. Stoney Patch, No. 19-6245 (C.D. Cal., W. Div., filed July 19, 2019). Stoney Patch candies, which contain tetrahydrocannabinol (THC), and Sour Patch Kids are both sold in yellow bags with green accents featuring the first word of the brand in green, all-caps sans serif type and "Patch" in the same type in orange. Where the Sour Patch Kids bag features silhouettes of the candies—colorful gummies in humanoid shapes—the Stoney Patch bag features images of a marijuana leaf. Mondelez argues that "it is inconceivable" that Stoney Patch adopted its mark without notice of the Sour Patch design and Mondelez' trademark rights to it. The company alleges federal trademark infringement, trade dress infringement, trademark dilution and unfair competition, and it seeks…
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Rep. Jerry McNerney (D-Calif.), in partnership with the Natural Products Association, has reportedly filed an amendment to the House Agriculture appropriations bill that would give the U.S. Food and Drug Administration (FDA) funding to undertake the process to identify a safe daily intake level of cannabidiol (CBD). “Since the passage of the 2018 Farm Act – which eliminated hemp from the definition of marijuana under the Controlled Substances Act – we’ve seen a significant increase in the production and sales of CBD products,” said McNerney in a June 18, 2019, press release. “With more and more CBD appearing on supermarket shelves across the country, it’s time for American consumers to have accurate information on CBD and for producers to be properly regulated to make the marketplace safe and reliable.” FDA has also announced the extension of the comment period for the public hearing intended to "obtain scientific data and information…
The Government of Canada has announced that it "is taking additional steps to reduce Canada’s plastic waste, support innovation, and promote the use of affordable and safe alternatives" by banning "harmful single-use plastics as early as 2021 (such as plastic bags, straws, cutlery, plates, and stir sticks)." The announcement indicates that the "measures will be grounded in scientific evidence and will align, where appropriate, with similar actions being taken in the European Union and other countries."
The Safe Food for Canadians Regulations (SFCR), which consolidates 14 Canadian food safety laws into one set of rules, went into effect January 15, 2019. The final rules were published in June 2018 and aim to "provide clear and consistent rules for food commodities so consumers can be confident that food on grocery shelves is safer to eat, whether it is produced in Canada or abroad." The rules align with many U.S. rules to streamline importing and exporting of food products between the countries. In addition, Health Canada has proposed rules for the sale of cannabis, including the proposed creation of "edible cannabis," "cannabis extracts" and "cannabis topicals" classes of products. The agency also proposed "new regulatory controls to address the public health and public safety risks associated with these new classes of cannabis, including their appeal to youth and the risks of accidental consumption, overconsumption, and foodborne illness, among other…
The Canadian Food Inspection Agency has proposed changes to its compositional standards of beer, ale, stout, porter and malt liquor "to allow for innovation within the beer category while still preserving product integrity and to better reflect the tastes and needs of consumers." The proposed amendments would update the definition of beer to allow the use of microorganisms beyond yeast in the fermentation starter culture and remove the requirement that the final product "possess the aroma, taste and character commonly attributed to beer." In addition, herbs and spices would be permitted for use in product formulation, and beer would be limited to no more than 4 percent by weight of residual sugars to distinguish beer from malt-based beverages. Comments on the proposed changes will be accepted until September 14, 2018.
The Canadian Food Inspection Agency (CFIA) has reportedly banned sales and distribution of Soylent meal-replacement drinks because they “do not meet a select few of the CFIA requirements.” In a letter posted on Soylent’s website, Rosa Foods’ CEO Rob Rhinehart said the CFIA informed the company of its decision. Rhinehart said Soylent is working with CFIA regarding regulatory compliance issues and that the company is committed to making the product available to Canadian customers as soon as possible. "Although we feel strongly that these requirements do not reflect the current understanding of human nutritional needs, we respect the CFIA’s regulations and will fully comply with any regulatory action they deem appropriate," Rhinehart said in the letter.
A Québec court has allowed to proceed a consumer's lawsuit alleging Sunwing Vacations Inc. misrepresented its "Champagne Service" because it served sparkling wine produced outside of the Champagne region of France. Macduff v. Sunwing Vacations Inc., No. 2017 QCCS 4540 (Québec Super. Ct., entered October 11, 2017). Sunwing argues that it uses the terms “champagne service” and “champagne vacation” to denote the level of service its hospitality packages provide rather than referring to a specific beverage served to customers. According to Canada’s National Post, about 1,600 potential class members have joined the lawsuit since it was filed.
President Donald Trump has indicated that he will attempt to renegotiate the North American Free Trade Agreement after making several negative comments about Canada's dairy pricing. The dispute centers on ultra-filtered milk, a product used in the production of cheese that U.S. dairy farmers previously sold to Canadian companies. After Canadian dairy farmers in Ontario dropped their prices low enough to compete with U.S. farmers, many Canadian cheesemakers canceled contracts with their U.S. suppliers to pursue the Ontario farmers' supply. Trump tweeted, “We will not stand for this,” and later announced that he will attempt to renegotiate the trade agreement with Canada. See USA Today, April 25, 2017; Washington Post, April 27, 2017. Issue 632
Subway has issued a notice of action in Canada against the Canadian Broadcasting Corporation (CBC) following a February broadcast of the network’s “Marketplace” program that claimed DNA testing of the chain’s sandwiches showed its chicken was half processed soy. The sandwich chain is reportedly asking for $210 million in damages for defamation. According to the Toronto Star, Subway asked the CBC to retract the story but decided to file suit after the network refused. Additional details about a U.S. projected class action filed against Subway after the CBC report appear in Issue 627 of this Update. See Fortune, March 17, 2017, Issue 628
A Connecticut plaintiff filed a projected class action against Subway after DNA testing of the chain’s chicken sandwiches allegedly showed the meat was only 42 to 53 percent chicken and the remainder was processed soy. Moskowitz v. Doctor’s Associates Inc., No. 17-0387 (D. Conn., filed March 1, 2017). Researchers affiliated with the Canadian Broadcasting Company’s “Marketplace” news show apparently found that the meat used in Subway’s oven-roasted chicken items was only 53.6 percent chicken, while the meat used in the sweet onion teriyaki items was only 42.8 percent chicken. The plaintiff claims that Subway is “disseminating false and misleading information via advertising, marketing, its website, and menu intended to trick unsuspecting customers, into believing they are purchasing chicken for their money, rather than Sandwiches and Chicken Strips containing a multitude of ingredients.” The complaint alleges violations of the federal Magnuson-Moss Warranty Act, the Connecticut Unfair Trade Practices Act, breach of…
