The European Commission has apparently sent “a reasoned opinion” to 10 member states “that have failed to correctly implement Directive 1994/74EC which introduces a ban on the use of un-enriched cages for laying hens,” according to a June 21, 2012, EU press release. The Commission has given Belgium, Greece, Spain, France, Italy, Cyprus, Hungary, the Netherlands, Poland, and Portugal two months to ensure compliance with the directive before referral to the EU Court of Justice. These countries apparently still permit the use of “un-enriched cages” for laying hens “despite the ban which came into force in January 2012 for which they have had 12 years to prepare.” Under the directive, “all laying hens must be kept in ‘enriched cages’ with extra space to nest, scratch and roost,” or in systems with at least 750 square centimeters of cage area as well as “a nest-box, litter, perches and claw-shortening devices, allowing…
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A California resident has filed a putative class action against Starbucks Corp. alleging that the company deceived consumers by failing to disclose that some of its products were made with cochineal extract, a common food-coloring ingredient made from crushed insects. Anderson v. Starbucks Corp., No. BC485438 (Cal. Super. Ct., Los Angeles Cty., filed May 25, 2012). Seeking to represent a nationwide class and statewide subclass of consumers, the plaintiff claims that she and the class members, had they known about the company’s use of the ingredient, would not have purchased the products for a number of reasons, including objections to consuming animal products, allergic responses to the ingredient or “sheer disgust.” Alleging violations of the California Unfair Business Practices Act and False Advertising Act, unjust enrichment, fraud by omission/concealment, and violation of California’s Consumers Legal Remedies Act, the plaintiff seeks disgorgement, restitution, compensatory and punitive damages, payment to a cy pres fund,…
Four members of the U.S. House of Representatives have introduced bipartisan legislation (H.R. 3798) that would provide “a uniform national standard for the housing and treatment of egg-laying hens.” According to the bill’s lead author, Representative Kurt Schrader (D-Ore.), the Egg Products Inspection Act Amendments of 2012 would also bring sustainability to the egg industry by avoiding a “problematic patchwork of state laws.” Noting that the proposed measure formalizes a 2011 agreement between the United Egg Producers and The Humane Society of the United States, Schrader said the proposal would require egg producers to nearly double the housing space allotted to egg-laying hens and make other “significant animal welfare improvements” within a 15- to 18-year phase-in period. More specifically, the legislation advocates (i) replacing conventional cages with “enriched colony housing systems” that feature perches, nesting boxes and scratching areas; (ii) labeling on egg cartons that discloses the method used to…
The Seventh Circuit Court of Appeals has determined that liability insurers of a major U.S. egg producer have no obligation to defend it in class action lawsuits alleging that the egg producer conspired with others to keep the price of eggs artificially high. Rose Acre Farms, Inc. v. Columbia Cas. Co., No. 11-1599 (7th Cir., decided November 1, 2011). Rose Acre Farms claimed that the antitrust actions sought damages falling under what the policies call “personal and advertising injury.” The court disagreed, noting that the company tried to “connect its advertising to the antitrust suit in [a] convoluted manner.” Because the antitrust complaints had nothing to do with trademark infringement, i.e., using another’s advertising idea without permission, which is the conduct covered by the “advertising injury” provision, the court affirmed the lower court’s ruling denying coverage
The European Food Safety Authority’s (EFSA’s) Panel on Dietetic Products, Nutrition and Allergies (NDA) has issued a scientific opinion on the use of egg-derived lysozyme in wine manufacturing after the Oenological Products and Practices International Association (OENOPPIA) applied to permanently exempt the anti-microbial stabilizer from labeling requirements. According to NDA, which was tasked with assessing the likelihood of allergic reaction to lysozyme-treated wine, the additive is approved for use in some foods to control lactic acid bacteria but “must follow purity specifications set forth in European legislation.” Because it can evidently be used “at different stages of wine production and at different doses,” lysozyme was detected in some wines at residual amounts “considered sufficient to trigger allergic reactions in susceptible individuals.” OENOPPIA had apparently argued that lysozyme is not only “the weakest allergen among the four major egg white proteins,” but unlikely to cause a clinical reaction in egg-allergic individuals…
A federal multidistrict litigation (MDL) court has granted several motions to dismiss in consolidated actions alleging a conspiracy by egg producers and trade associations to restrict the domestic supply of eggs. In re: Processed Egg Prods. Antitrust Litig., MDL No. 2002 (E.D. Pa., decided September 26, 2011). Among other allegations, the plaintiffs contend that the defendants agreed over a period of years to reduce the size of egg-laying flocks and require larger cages to reduce overall hen densities as part of an alleged collective plan to keep egg prices high. In their motions to dismiss, the defendants argued that while the second amended complaint alleged sufficient facts to support the antitrust conspiracy claim as to some of the defendants, “the pleading is deficient with respect to each of the movants by failing to allege facts that they specifically were parties to the conspiracy.” Examining each motion in turn, the court dismissed…
The Food and Drug Administration (FDA) has answered criticism of a July 21, 2000, final rule allowing “the safe use of ionizing radiation for the reduction of Salmonella in fresh shell eggs,” and denied requests for a hearing on the ground that the objections “do not raise issues of material fact or otherwise provide a basis for revoking or modifying . . . the regulation.” FDA evidently received 26 submissions contesting the final rule, which permits the irradiation of fresh shell eggs at doses not to exceed 3.0 kiloGray (kGy), but only one letter from Public Citizen raised specific issues within the rule’s scope. The April 13, 2011, Federal Register notice responds to Public Citizen’s claims that FDA misrepresented irradiation’s efficacy and its effect on vitamin A loss and egg yolk carotenoids; that FDA raised the dose allowance to 3.0 kGY without properly updating its analyses; and that FDA failed…
A company that sells a variety of seafood spreads has sued one of its packers, which allegedly added undeclared eggs to the company’s smoked salmon spread. Sau-Sea Foods, Inc. v. Lukas Foods, Inc., No. 11-00104 (D. Me., filed March 23, 2011). The plaintiff apparently learned about the problem after the Food and Drug Administration (FDA) inspected the defendant’s facility and discovered that eggs had been used in the spread, thus “posing a potential health hazard.” A recall was immediately undertaken and widely reported in the media. Thereafter, FDA allegedly informed the plaintiff that its salmon spread “posed an acute, life-threatening hazard to health” and designated the recall as Class I. Alleging breach of contract, breach of express and implied warranties, negligence, unjust enrichment, breach of implied contract, and negligent misrepresentation, Sau-Sea Foods seeks damages, interest, costs, and attorney’s fees. While the company alleges damages exceeding the $75,000 jurisdictional minimum, it…
The Food and Drug Administration (FDA) has issued a warning letter to CEO John Glessner of Ohio Fresh Eggs, after finding that it had shipped nearly 800 cases of eggs from farms that had tested positive for Salmonella. The Ohio company is reportedly linked to the egg producer involved in a massive egg recall in 2010; Glessner apparently has ties to Hillandale Farms of Iowa whose owner Jack DeCoster apparently provided most of the funds to purchase Ohio Fresh Eggs from a previous owner. The company has reportedly characterized the shipment as a mistake and was quoted as saying, “Our farm cooperated fully with FDA to ensure a swift and complete recall of those eggs from our customer, and we are thankful no illnesses were reported.” See Des Moines Register, March 1, 2011.
The U.S. Department of Agriculture’s Animal and Plant Health Inspection Service (APHIS) has issued an interim rule updating its highly pathogenic avian influenza (HPAI) requirements for importing birds, poultry and hatching eggs. Because APHIS’s previous restrictions applied only to the H5N1 subtype of avian influenza, the new rule extends its purview to include any HPAI subtype, thus barring poultry imports from any country where these subtypes “are considered to exist.” Effective January 24, 2011, the interim rule also prohibits the importation of live poultry and birds that “have been vaccinated for any H5 or H7 subtype,” as well as their hatching eggs, since these imports “may produce false positive test results … during the required 30-day quarantine.” In addition, APHIS has banned live poultry, birds and hatching eggs “that have moved through regions where any HPAI subtype exists.” APHIS has invited comments on the interim rule before March 25, 2011.…
