A coalition of advocacy groups has filed a complaint with the Federal Trade Commission (FTC) asserting that Smithfield Foods misleadingly markets its pork products as "produced in an environmentally responsible and sustainable way" despite the company's production methods allegedly falling "far below the level of environmental sustainability that a reasonable consumer would expect based on the company’s representations." The complaint further argues that "Smithfield touts its use of anaerobic digesters to produce methane from its pollution-laden waste as a sustainable innovation and solution to Smithfield’s climate damaging production practices—a falsehood that capitalizes on an issue of growing importance to consumers." The petitioners include Food & Water Watch, Socially Responsible Agriculture Project and organizations from Iowa, Missouri and Pennsylvania.
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A plaintiff has filed a putative class action alleging Diestel Turkey Ranch falsely markets its turkeys as "thoughtfully raised on sustainable family farms with plenty of fresh air and space to roam." Wetzel v. Diestel Turkey Ranch, No. 20-1213 (D.N.M., filed November 19, 2020). The plaintiff argues that Diestel "sources the overwhelming majority of its turkeys from growers outside of Sonora, California, at typical factory farms [], where turkeys are raised in large, overcrowded metal sheds that lack sufficient space to engage in natural behaviors and are often mired in manure and slaughterhouse waste—i.e., not ranches or ranch-like conditions depicted at the Sonora Ranch." The plaintiff alleges violations of New Mexico's false advertising law. Cargill Inc. faces similar allegations in a complaint filed with the Federal Trade Commission by several advocacy groups. "Cargill makes numerous representations that lead consumers to believe the turkeys used in its Products are raised by 'independent family…
An Arizona federal court has granted the U.S. Federal Trade Commission's (FTC's) request to temporarily shut down "Success By Health," an alleged pyramid scheme premised on the sale of instant coffee. The coffee, "MycoCafe," is touted as containing health benefits from mushrooms. "However, the FTC alleges that selling the product to coffee drinkers took a back seat to recruiting more affiliates," according to an agency press release. "The complaint alleges that when affiliates did try to sell the product to other consumers, they found themselves in competition with the company itself. Success By Health sells its products directly to the public for the same 'wholesale' price paid by affiliates, severely limiting affiliates’ ability to follow the defendants’ instructions to apply a 50 percent 'markup' before selling to the public."
The U.S. Food and Drug Administration (FDA) and Federal Trade Commission (FTC) have announced a joint warning letter sent to Rooted Apothecary LLC focused on the potential benefits that the company claimed its cannabidiol (CBD) products could provide. "The Agency continues to be concerned about the proliferation of products asserting to contain CBD that are marketed for therapeutic or medical uses without having been reviewed for safety and effectiveness by the FDA as is required by law and to protect the public health," the letter states. "There are many unanswered questions about the science, safety, effectiveness and quality of unapproved products containing CBD. Without this information, we are unable to ensure that these products will not cause harm to people who use them." The agencies warn that Rooted Apothecary is marketing unapproved drugs because it advertises its CBD-infused products as helping to diagnose, cure, mitigate, treat or prevent a number…
The U.S. Federal Trade Commission (FTC) will hold a public workshop to consider "Made in USA" product claims on September 26, 2019. In advance, FTC is requesting comments on several questions, including: (i) "What rationales underlie consumer preferences for products made in USA?"; (ii) "When consumers see product advertisements or labels stating or implying that products are 'Made in USA' or the equivalent, what amount of U.S. parts and labor do they assume are in the products?"; and (iii) "Do firms that advertise their products as 'Made in USA' charge higher prices than their competitors whose products are not advertised in this way?"
The U.S. Federal Trade Commission (FTC) has settled its lawsuit alleging that Gerber Products Co. made false claims about the anti-allergy benefits of Good Start Gentle infant formula, according to an order terminating the action. FTC v. Gerber Prods. Co., No. 14-6771 (D.N.J., entered April 30, 2019). FTC filed the action in response to Gerber's claims that its formula was "the first and only infant formula" that could claim to reduce the risk of developing allergies. Following FTC's lawsuit, consumers made similar claims in a putative class action. The court's order terminates the action but does not provide details about the settlement.
Leaf Brands, which manufactures and sells Hydrox cookies, has reportedly filed a complaint with the Federal Trade Commission (FTC) alleging anti-competitive practices by Mondelez, which produces Oreos. In a social media post, Leaf Brands alleges that Mondelez has been "undertaking a national program to damage our brand and stop us from competing," including "trying to make it hard to find our cookies in stores nationally, in hopes of lowering sales volume and having us discontinued." Leaf Brands alleges that when Mondelez employees stock grocery stores shelves, they move Hydrox cookies to less noticeable areas on the shelf. "We hope the Federal Trade Commission will start the investigation very soon," the post states. "We understand there is already case law on this issue and we hope to utilize it in our case against Mondelez."
Lorrie Faith Cranor will reportedly succeed Askan Soltani as Chief Technologist at the Federal Trade Commission (FTC) as of January 2016. The role focuses on advising FTC Chair Edith Ramirez and the Commission on technology and policy issues. “Technology is playing an ever more important role in consumers’ lives, whether through mobile devices, personal fitness trackers or the increasing array of Internet-connected devices we find in homes and elsewhere,” Ramirez said in announcing Cranor’s appointment. Cranor currently directs the CyLab Usable Privacy and Security Laboratory at Carnegie Mellon University, where she is a professor of Computer Science and Engineering and Public Policy. She has authored more than 150 papers about online privacy and usable security. See FTC News Release, December 3, 2015. Issue 587
