An administrative law judge has apparently begun hearing a Federal Trade Commission (FTC) complaint alleging that POM Wonderful LLC makes false and unsubstantiated claims that its pomegranate juice products will prevent or treat “heart disease, prostate cancer, and erectile dysfunction.” According to a news source, the government opened its case by asserting that the studies on which the company relied do not support the marketing claims and that its executives “repeatedly ignored warning signs that the marketing didn’t match the science.” Food and beverage companies and advertisers are reportedly watching the dispute closely; if the agency prevails, the companies will have to support their advertising with more scientific evidence. POM contends that its product claims are supported by $35 million in research and that the company has “sponsored or participated in more than 90 scientific investigations with over 65 studies on POM products, including 17 clinical trials.” POM will also…
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A federal jury agreed with POM Wonderful LLC that Welch Foods, Inc. developed intentionally confusing and misleading marketing and labeling for its White Grape Pomegranate juice product to take advantage of the market POM created for pomegranate juice, but determined that POM did not lose sales because of Welch’s conduct. POM Wonderful LLC v. Welch Foods Inc., No. 09-00567 (C.D. Cal., verdict reached September 13, 2010). More details about the case appear in Issue 290 of this Update. POM has reportedly asked the Ninth Circuit Court of Appeals to review the verdict, claiming that the lower court’s decision to try the case in two phases led the company to refrain from introducing evidence about lost sales during the first phase, which focused on liability. According to a news source, the company requested before the verdict that the court not instruct the jury to decide whether POM had lost sales, but…
The parties litigating whether Welch Foods, Inc. falsely labeled its “100% Juice White Grape Pomegranate flavored 3 juice blend” beverage have filed a stipulation of settlement in a California federal court. Burcham v. Welch Foods, Inc., Nos. 09-05946 and 10-01427 (C.D. Cal., filed February 7, 2011). Under the agreement, a nationwide class of consumers would release their claims in return for refunds and coupons for replacement products, depending on whether they can prove that they purchased the product. The company would place coupons for free juice products in Sunday newspapers throughout the United States at a total value of $30 million. While Welch’s continues to maintain that the labeling claims are preempted by federal law and that the company has complied in all respects with federal law, it also claims that it lost money selling the white grape pomegranate juice. Acknowledging the difficulties in locating class members, Welch’s has also…
A federal district court in New York has granted the motion for summary judgment filed by Snapple Beverage Corp. in a case alleging that the company misled consumers by labeling its teas and juice drinks as “All Natural” because the company’s beverages contain high-fructose corn syrup (HFCS). Weiner v. Snapple Beverage Corp., No. 07-8742 (S.D.N.Y., decided January 21, 2011). The court had previously denied plaintiffs’ motion for class certification but determined, despite that denial, that it could decide the merits of the summary judgment motion even though the lawsuit now failed to satisfy the requirements of original diversity jurisdiction. The defendant argued that the plaintiffs did not offer any evidence showing injury from Snapple’s “All Natural” labeling, and the court agreed. Analyzing each claim—violation of a state deceptive practices law, unjust enrichment, and breach of express and implied warranty—the court found that the plaintiffs failed to present reliable evidence that they…
According to a press report, an amended putative class complaint has been filed in a Florida federal court against two companies that make and sell apple juice for children’s consumption, alleging that by failing to warn about the presence of lead in the juice the companies have violated state deceptive and unfair trade practices law. Poulis v. Gerber Prods. Co., No. 10-81475 (S.D. Fla., amended complaint filed January 11, 2011). The complaint was originally filed in state court soon after a California nonprofit organization notified the companies in June 2010 that their products contained lead in excess of levels established as safe under that state’s Safe Drinking Water and Toxic Enforcement Act of 1986 (Proposition 65). It was removed to federal court in November. The plaintiffs have not apparently alleged personal injury from the exposure, but claim they would not have purchased the companies’ products if they had known about…
A Florida resident has filed a putative class action against Tropicana Products,Inc. and a retailer, alleging that promotions for Trop50 Pomegranate Blueberry Juice Beverage® are deceptive because the product consists primarily of“a mixture of cheap apple juice and grape juice concentrates.” Cruz v. Tropicana Prods., Inc., No. 10-62926CA08 (Fla. Cir. Ct., Miami-Dade Cty., filed December 14, 2010).Seeking to certify a statewide class of consumers, the plaintiff claims that Tropicana hoped to tap into the “enormous new market”of those seeking to benefit from the antioxidants in blueberries and pomegranates by creating a “deceptive and misleading label with many elements not required by state or federal regulations.” The complaint refers to a September 2010 jury verdict in California finding that Welch Foods, Inc. marketed its 100% Welch’s White Grape Pomegranate® beverage deceptively with labeling that was “literally true” but “had a tendency to deceive a substantial number of consumers.” The complaint also notes…
Two Missouri residents with arthritis and allergies have filed a putative class action on behalf of Missouri, Illinois and Kansas consumers who were allegedly deceived by false health-related claims made by a company that sells elderberry juice. Delling v. Wyldewood Cellars, Inc., No. 10-02287 (E.D. Mo., filed December 6, 2010). The complaint also names a retailer as a defendant. The plaintiffs contend that they read an advertisement stating that elderberry juice “prevents colds, flu, viruses, asthma, allergies, diabetes, arthritis & more!” When they went to the store to further evaluate the product, they allegedly read customer and “physician” testimonials about the curative properties of elderberry juice and decided to purchase the product. According to the plaintiffs, they used the product “but failed to realize any health benefits and certainly did not see any abatement in their allergy or arthritis problems.” The plaintiffs allege one count of consumer fraud and seek…
The Federal Trade Commission (FTC) has announced the unanimous approval of a final order settling charges that a former POM Wonderful LLC executive made false and unsubstantiated claims that the company’s pomegranate products prevent or treat heart disease and prostate cancer. Under the agreement, Mark Dreher, a former POM Wonderful vice president, does not admit to violations of the law, but will cooperate in FTC’s investigation and action against his former company. He also agreed to abide by the conditions prescribed for making any health-related claims for a food or drug product in the future and to give present and future employees copies of the order. According to a news source, FTC has scheduled a May 24, 2011, hearing before an administrative law judge for POM Wonderful to respond to charges that it has made allegedly false health-related product claims. Dreher has agreed to participate in interviews with the agency in…
The Food and Drug Administration (FDA) has reportedly “completed its most recent check of amounts of lead in some commercial juice and food products that contain fruit,” finding no cause for consumer concern. FDA tested apple juice, grape juice, peach slices, pears, mixed fruit, and fruit cocktail in response to a 2009 study by the Environmental Law Foundation, which sent notices “to numerous manufacturers of juice and packaged fruit products alleging the companies were not in compliance with the California Safe Drinking Water and Toxic Enforcement Act of 1986, also known as California Proposition 65, because the manufacturers failed to disclose that the products contained lead.” According to the most recent results, “Almost all the products FDA tested contained a small amount of lead, but in each case the level found would not pose an unacceptable risk to health.” The agency has further explained that lead in soil “can be deposited…
A putative class action has been filed in a federal court in Florida against POM Wonderful, LLC and its holding company, alleging that the defendants deceived consumers in the state by making health-benefit claims for POM’s pomegranate juices, pills, extracts, and concentrated liquids. Cortez v. POM Wonderful, LLC, No. 10-23680 (S.D. Fla., filed October 13, 2010). Alleging damages in excess of $5 million, the named plaintiff cites the Food and Drug Administration’s warning letter to the company and the Federal Trade Commission’s recently filed administrative complaint to support claims that the company’s representation about its products are “false and misleading.” Among the product claims alleged to be false are that it will prevent, mitigate and/or treat atherosclerosis, blood flow/pressure, prostate cancer, erectile dysfunction, cardiovascular disease, LDL cholesterol, and other age-related medical conditions. Seeking to certify a statewide class of consumers who bought the products from September 29, 2006, to the…
