A National Labor Relations Board (NLRB) judge has determined that Sprouts Farmers Market violated federal labor law by requiring employees to sign mutual binding arbitration agreements (MAAs) that preclude class or collective-action claims in arbitration or otherwise as a condition of hiring and continued employment. SF Mkts, LLC d/b/a Sprouts Farmers Mkt., Nos. 21-CA- 099065, -104677 (NLRB Div. of Judges, Atlanta Branch Ofc., decided February 18, 2014). The issue arose from two cases: in the first, Jana Mestanek filed wage-andhour claims against the employer in court, and it sought to compel arbitration under the MAA to which she had agreed; in the second, Laura Christensen was fired for refusing to sign an acknowledgement of an employee handbook supplement agreeing to the terms of a revised MAA. At issue was whether D.R. Horton, Inc. (Horton), 357 NLRB No. 184 (2012), enfd. in part, denied in part, 737 F.3d 344 (5th Cir.…
Tag Archives grocery
The Consumer Advocacy Group, Inc. has filed a series of Proposition 65 (Prop. 65) 60-day notices since December 2013 against supermarkets and rice companies in California, Texas and Taiwan, alleging violations of the law for failure to warn consumers that their rice products contain arsenic (inorganic arsenic compounds), known to the state to “cause both cancer and reproductive toxicity.” The most recent notice was filed February 17, 2014. Under Prop. 65, private citizen enforcers must notify the alleged violator and local prosecuting authorities of their intent to sue so that the alleged violator has the opportunity to correct any alleged violation and local district attorneys have the opportunity to bring government action. The first in this series of notices, brought against Far West Rice, Inc., also alleged that the company’s rice contained lead. Issue 514
A federal court in California has preliminarily approved a $3.375 million settlement of class-action claims that Trader Joe’s misled consumers throughout the United States by selling a number of food products with “All Natural” labels despite the presence of synthetic or artificial ingredients. Larsen v. Trader Joe’s Co., No. 11-5188 (N.D. Cal., order entered February 6, 2014). Additional details about the complaint appear in Issue 415 of this Update. According to a news source, the agreement would provide class members with proof of purchase the average price of the purchased items. Those without proof of purchase would receive between $2.70 and $39.99. The grocery chain has also apparently agreed to stop advertising the products as “all natural.” The final approval hearing has been scheduled for July 9, 2014. See Law360, February 7, 2014. Issue 513
Researchers with the University of California, San Francisco, have reported that 25 percent of 1,056 online coupons surveyed during a four-week period “were for processed snack foods, candies and desserts,” raising questions about the impact of retailer discounts on dietary patterns. Andrea López & Hilary Seligman, “Online Grocery Store Coupons and Unhealthy Foods, United States,” Preventing Chronic Disease, January 2014. According to the study, which reviewed all online coupons weekly from six retail grocery chains across the United States, the largest percentage of available coupons was for processed snack foods (25 percent), followed by prepared meals (14 percent), beverages (12 percent) and cereals (11 percent). While less than 1 percent of coupons were for fruits or beverages, more than 50 percent of the total beverage coupons were for sodas, juices and sports/energy drinks. “Our data are consistent with previous research showing that grocery stores infrequently promote foods that support a…
A December 2013 Food & Water Watch (FWW) report titled “Grocery Goliaths: How Food Monopolies Impact Consumers” examines consolidation in the food industry and how this affects “every link in the food chain, from farm to fork.” Analyzing 100 types of grocery products from cereals and soft drinks to frozen meals and crackers, the report suggests that the top four or fewer food companies control a “substantial majority of the sales of each item.” It further contends that the largest food manufacturers often offer multiple brands of the same food product, “giving consumers the false impression that they are choosing between competing products when in fact all the sales can go to the same parent company.” Noting that during the past few years as food companies and supermarket chains have consolidated, the illusion of choice has coincided with higher grocery bills, FWW Executive Director Wenonah Hauter said, “you might think…
Texas and California residents have filed a putative class action against Whole Foods Market Services, Inc. in a Texas federal court, alleging that the company’s private label lines include falsely labeled additive-laden and genetically modified (GM) foods, despite promises that its products contain “nothing artificial” and that it enforces “strict quality standards.” Gedalia v. Whole Foods Mkt. Servs., Inc., No. 13-3517 (S.D. Tex., filed November 28, 2013). Among purported transgressions are (i) organic infant formula containing 25 ingredients “prohibited from being in organic foods” as well as 30 artificial ingredients, and (ii) organic soy and almond milk containing “ingredients not permitted in organic foods.” The complaint also alleges that the company reneges on its promise to avoid ingredients grown from genetically engineered seed and relies on a Cornucopia Institute study purportedly showing that Whole Foods’ 365 Everyday Value® products “were contaminated with high levels of genetically engineered ingredients,” citing, in particular,…
A federal court in Washington has dismissed the second amended consumer fraud complaint filed against Costco Wholesale Corp. concerning its VitaRain® Enhanced Water Beverage; while the court dismissed the complaint without leave to amend, it did not dismiss it with prejudice. Maple v. Costco Wholesale Corp., No. 12-5166 (E.D. Wash., order entered November 1, 2013). The plaintiff claimed that the name “VitaRain” is itself deceptive, and the court disagreed, finding it implausible that it could “deceive a substantial portion of the public into believing that the beverage is ‘full of vitamins only’ or that it is a ‘nutritional’ or ‘healthy’ beverage. The name ‘VitaRain’ is largely nonsensical.” The plaintiff also associated the name with another beverage product containing the word “vitamin,” and the court stated in this regard, “Plaintiff’s claim must be limited to the actual representation, ‘VitaRain’ in this case, and not some imagined representation he arrived at through…
Mondelēz International reportedly intends to introduce “smart shelves” whose sensors first identify the age and gender of grocery shoppers and then deliver targeted ads via video display. “Knowing that a consumer is showing interest in the product gives us the opportunity to engage with them in real-time,” Mondelēz CIO Mark Dajani said in a recent Wall Street Journal article. Dajani noted that the smart shelves will respect consumers’ privacy because no photos, video or personal information will be captured. See Wall Street Journal, October 11, 2013.
A federal court in California has dismissed certain claims, with leave to amend, in putative class litigation challenging various aspects of labels for Wallaby Yogurt Co. and Trader Joe’s Co. food products; it has refused to abstain from deciding the matters under the primary jurisdiction doctrine. Morgan v. Wallaby Yogurt Co., Inc., No. 13-296, Gitson v. Trader Joe’s Co., No. 13-1333 (N.D. Cal., orders entered October 10, 2013). Both suits include claims, among others, that the companies mislead consumers by using “evaporated cane juice” instead of “sugar” on their product labels. In Wallaby, the court rejected the defendant’s argument that the plaintiffs lacked standing to bring their claims because they had not plausibly alleged actual injury. Wallaby apparently said, “Plaintiffs paid for food products. They consumed the products without incident or physical injury. The goods were not tainted, spoiled, adulterated, or contaminated. They do not allege that the ingredients were…
A California appeals court has affirmed the dismissal with prejudice of a putative class action alleging that Kroger Corp. misled consumers by failing to comply with federal and state law requirements for labeling its Challenge® spreadable butter products. Simpson v. The Kroger Corp., No. B242405 (Cal. App. Ct., decided September 25, 2013). The court found that the labeling requirements of the state Milk and Milk Products Act of 1947 were not identical to federal labeling requirements, and thus claims based on the Act were preempted. And while the court found that the plaintiff’s mislabeling claims under the state Sherman Food, Drug and Cosmetic Law were not preempted, it ruled that the trial court did not abuse its discretion in denying leave to amend the complaint, because “as a matter of law, plaintiff has failed to demonstrate that a reasonable consumer would be misled by the labels on the products.” Noting…
