The United States has appealed the World Trade Organization’s (WTO’s) ruling in favor of Canada and Mexico in a dispute over U.S. country-of-origin labeling (COOL) regulations requiring pork and beef products originating outside the United States to carry labels specifying their sources. The appeal notification circulated to WTO members indicated that the United States has challenged several of the panel’s findings, including that the detrimental impact does not stem exclusively from legitimate regulatory distinctions because “the amended COOL measure entails an increased recordkeeping burden and increased segregation,” “the current labels provided by the amended COOL measure have a potential for label inaccuracy,” and “the amended COOL measure continues to exempt a large proportion of muscle cuts.” Appeals are heard by three members of a permanent seven-member appellate body unaffiliated with any government, and the appellate body generally has three months to conclude its report. Additional information on the WTO panel’s…
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A study of national poison control center data has reported that public and health care providers filed 5,156 incidents of energy drink exposure between October 2010 and September 2013, with 40 percent of cases involving children younger than age 6. Presented at the American Heart Association’s Scientific Sessions 2014, the new research warned that among cases with major outcomes, “cardiovascular effects (including an abnormal heart rhythm and conduction abnormalities) were reported in 57 percent of cases, and neurologic effects (seizures, including status epilepticus) in 55 percent.” The study also identified moderate or major health outcomes in 42 percent of cases involving energy drinks mixed with alcohol and 19 percent of cases involving alcohol-free energy drinks. Based on these findings, the researchers have evidently called for additional labeling to educate consumers about “energy drinks’ high caffeine content and subsequent health consequences.” “The reported data probably represent the tip of the iceberg,” said…
In a dispute over commercial liability insurance coverage, the Eighth Circuit Court of Appeals has ruled that a trial court erred in deciding, as a matter of law, that a recall of sausage breakfast sandwiches prompted by contamination with monosodium glutamate (MSG) was a covered incident. Hot Stuff Foods, LLC v. Houston Cas. Co., Nos. 14-1192, -1194 (8th Cir., decided November 17, 2014). When MSG is added to foods, it must be disclosed on the product label. Hot Stuff Foods makes sausage breakfast sandwiches with sausage that does not contain MSG and does not include it on package labels. The company also distributes sausage that contains MSG and learned in January 2011 that some of the MSG sausage was inadvertently used in the breakfast sandwiches. Because the product contained MSG not disclosed on the labels, it was misbranded under federal law. The company promptly reported the situation to Food and Drug…
The Center for Science in the Public Interest (CSPI) has filed a citizen petition with the U.S. Food and Drug Administration (FDA) seeking a rule that would require sesame seeds and sesame products to be disclosed on food labels in the same way that allergens, such as milk, eggs, fish, shellfish, tree nuts, peanuts, wheat, and soy, are disclosed. CSPI asks that sesame be added to FDA’s list of allergens in its “Statement of Policy for Labeling and Preventing Cross-contact of Common Food Allergens” “to address both labeling and cross contact issues related to food manufacturing practices.” The petition includes letters from parents of purported sesame-allergic children “explaining why better labeling is so important for their families.” They claim that reactions to sesame have been severe and life-threatening. See CSPI News Release, November 18, 2014.
According to a news source, New Jersey residents have filed a putative class action in state court against the Texas-based company that makes Tito’s Handmade Vodka®, the fourth such action filed within the past two months, alleging that promoting and labeling the product as “handmade” deceives consumers because the vodka is made in an industrial facility and the company sells more than 15 million bottles a year. McBrearty v. Fifth Generation, Inc. The first complaint was filed in California in September 2014 and subsequently removed to federal court, Hofmann v. Fifth Generation, Inc.; the second followed in early October in an Illinois state court, Aliano v. Fifth Dimension, Inc.; the third was filed in a Florida federal court, Pye v. Fifth Generation, Inc. The complaints variously refer to the company’s website and a Forbes article purportedly featuring images of old-time pot-still production (“i.e., in a shack containing a pot still…
Whole Foods Market Inc. is the target of two new putative nationwide class actions, one filed in a Texas federal court regarding the amount of sugar in the company’s plain Greek yogurt and the other filed in a California state court over alleged false advertising and sales of Blue Diamond almond milk products with a “Non-GMO Project Verified” label. Kubick v. Whole Foods Mkt., Inc., No. 14-1013 (W.D. Tex., filed November 10, 2014); Richard v. Whole Foods Mkt. Cal., Inc., No. BC563304 (Cal. Super. Ct., Los Angeles Cty., filed November 7, 2014). The Texas complaint alleges that Whole Foods 365 Everyday Plain Greek Yogurt represents that it contains 2 grams of sugar per serving, when testing shows that it actually contains more than 11 grams of sugar per serving, or “more than five and a half times the labeled amount.” According to the plaintiff, a California resident, this is particularly significant because…
According to press reports, New York Assemblyman Karim Camara (D-Brooklyn) announced this week that he intends to propose legislation requiring sugar-sweetened beverages (SSBs) to carry labels cautioning that their consumption contributes to “obesity, diabetes and tooth decay.” He introduced a similar bill (A10172) in August 2014, but no action was apparently taken on that initiative. “We can’t sit back and pretend that sugary drinks aren’t harmful to people,” Camara was quoted as saying. “The research is clear—too much sugar leads to health problems such as obesity and diabetes.” A California Assembly committee defeated like-minded legislation earlier in 2014. More details about that proposal appear in Issue 527 of this Update. See The New York Post, November 13, 2014. Issue 545
A California resident has filed a putative nationwide class action in federal court against Olé Mexican Foods, Inc., alleging that its Xtreme Wellness® whole-wheat tortillas contain partially hydrogenated vegetable oil, “banned in many parts of the world due to its artificial trans fat content,” thus belying the health and wellness representations the company uses on product labels. Guttmann v. Olé Mexican Foods, Inc., No. 14-4845 (N.D. Cal., filed October 31, 2014). The plaintiff alleges that artificial trans fat causes cardiovascular disease; Type 2 diabetes; breast, prostate and colorectal cancer; Alzheimer’s disease and cognitive decline; and damage to vital organs. He claims that he purchased one package each month for two years at a higher price than comparable products relying on package labeling stating “Healthy Life Style,” “Better Choice for Your Health,” “Whole Wheat,” and “High Source of Fiber and Protein.” According to the complaint, because the product contains trans fat, small amounts…
Diamond Foods, Inc. has agreed to settle the consumer fraud class action suits filed by plaintiffs in California and Florida alleging that the company falsely labels its Kettle Brand® chip products as “All Natural,” when they contain artificial, synthetic or genetically modified ingredients, or as “Reduced Fat” while referencing non-comparable foods. Klacko v. Diamond Foods, Inc., No. 14-80005 (S.D. Fla., motion for preliminary approval filed October 22, 2014). Details about one of two similar California lawsuits appear in Issue 510 of this Update. Under the agreement, the company would establish a $2.75-million fund for class member claims, pay the costs of class notice and administration up to $300,000 and agree not to oppose attorney’s fees, expenses and costs of $775,000. Class members with proof of purchase would be able to recover up to $20, representing $1.00 for up to 20 purchases; those without proof of purchase would recover up to $10.…
A federal court in New York has granted the motion for summary judgment filed by the owners of Kangadis Food Inc., a company that declared bankruptcy when faced with class claims that it falsely labeled its products as pure olive oil when they actually contain an industrially processed substance. Ebin v. Kangadis Family Mgmt. LLC, No. 14-1324 (U.S. Dist. Ct., S.D.N.Y., order entered October 24, 2014). Additional information about the litigation appears in Issue 539 of this Update. According to the court, the “plaintiffs have failed to adduce competent labeling evidence from which any reasonable juror could conclude that defendants used their alleged domination of Kangadis Food Inc. as a means to accomplish the fraud here alleged.” Counsel for the defendants reportedly surmised that the court agreed that the plaintiffs’ “derivative claims are nothing more than a desperate attempt to extract some value from the defendants, individuals and a separate entity with…
