Global Product Liability Partners Gregory Fowler and Marc Shelley have co-authored an article titled “Food and beverage labelling and advertising in the United States: Regulatory and litigation landmines,” appearing in the September 2014 issue of the International Bar Association’s Product Law and Advertising Newsletter. The article considers the public and private challenges facing U.S. food and beverage companies that promote their products as beneficial to health, “natural” or “all natural,” or include in their products genetically modified ingredients, high-fructose corn syrup or “evaporated cane juice.” The authors address trends in consumer-fraud lawsuits and settlements, competitor litigation and suits brought by morality and decency watchdogs. The article concludes by recommending the inclusion of a legal team in marketing strategies to enhance the likelihood that companies will successfully navigate these risks while distinguishing themselves in the marketplace. Issue 542
Tag Archives labeling
Vermont Attorney General (AG) William Sorrell is inviting public comments on a draft rule intended to enforce the state’s new law requiring the labeling of genetically modified organisms (GMOs) in food products. The proposed rule defines relevant terms such as “food,” “genetic engineering” and “in vitro nucleic acid techniques,” providing standards for retailers and food manufacturers about how to label and display the foods. In addition, the draft rule lists exemptions from the GMO-labeling requirement, including alcoholic beverages, food prepared for immediate consumption, medical food, and processed foods containing less than 1 percent genetically engineered materials. The AG’s office is accepting comments by email and at hearings set for October 21, 22 and 24, 2014, in Burlington, Montpelier and Brattleboro, Vermont. Additional information about the law appears in Issue 521 of this Update, and a recent development on the lawsuit challenging the law appears in Issue 540 of this Update. See Office…
A federal court has denied Vermont Public Interest Research Group (VPIRG) and the Center for Food Safety’s (CFS’s) motion to intervene in a lawsuit challenging Vermont’s statute requiring food manufacturers to label their products if they contain genetically modified organisms (GMOs). Grocery Mfrs. Ass’n v. Sorrell, No. 14-0117 (U.S. Dist. Ct., D. Vt., order entered October 7, 2014). In their motion to intervene, the consumer groups argued that they had a right to be involved in the litigation because if Act 120 were held to be unconstitutional, it would “injure their organizational missions, their advocacy efforts, and the personal interests of their members.” In addition, they asserted that the state’s financial and human resources were insufficient to defend the law. In response, the court cited a Sixth Circuit decision holding that, according to the district court’s summary, “a public interest group does not have a separate interest sufficient to intervene…
A New York bankruptcy court and federal court have issued orders certifying classes in litigation against Kangadis Food, Inc. d/b/a The Gourmet Factory and related entities, alleging that the company falsely labeled its products as “100% Pure Olive Oil” when they actually contain the industrially processed substance “olive-pomace oil,” “olive-residue oil” or “Pomace.” In re Kangadis Food Inc., No. 14-72649 (U.S. Bankr. Ct., E.D.N.Y., order entered September 19, 2014); Ebin v. Kangadis Family Mgmt. LLC, No. 14-1324 (S.D.N.Y., order entered September 18, 2014). Additional information about the federal court proceeding appears in Issue 507 of this Update. While the federal court dismissed the direct claims against the company’s owners, it found that the claims could proceed against them “under the veil piercing and alter ego theories.” The court further rejected the defendants’ “ascertainability” challenge to class certification, noting that “whether or not an individual purchased during the class period a tin…
A California federal court has approved a settlement in a case accusing Guayaki Sustainable Rainforest Products Inc. of misleading its customers by listing “organic evaporated cane juice” (ECJ) as an ingredient of its yerba mate products. Cowan v. Guayaki Sustainable Rainforest Prods. Inc., No. 14-1248 (U.S. Dist. Ct., N.D. Cal., order entered September 16, 2014). The terms of the settlement agreement are confidential. The plaintiff’s suit was part of a deluge of putative class actions alleging product mislabeling because the companies included ECJ on their ingredient lists rather than, plaintiffs have argued, the more common and accepted term for the substance, sugar. Many of these cases have been dismissed without prejudice or stayed while courts and parties await promised guidance on the issue from the U.S. Food and Drug Administration. Additional information on recent cases appears in Issues 534, 532 and 530 of this Update. Issue 538
A Florida federal court has denied Anheuser-Busch’s motion to dismiss a case accusing the beverage company of misleading consumers into believing that Beck’s beer was still brewed in Germany, finding that the plaintiffs adequately pleaded their claims. Marty v. Anheuser-Busch Cos., No. 13-23656 (S.D. Fla., order entered September 5, 2014). In 2012, Anheuser-Busch moved production of Beck’s, brewed in Germany from 1873, to St. Louis, Missouri. The company added a “Product of the U.S.A.” disclaimer to the Beck’s packaging, but the plaintiffs argued that the disclaimer was too small, too difficult to read due to its white script on a silver background and blocked by the cans or bottles in the carton, and the court agreed, allowing the unjust enrichment and consumer protection violations claims to proceed. Citing the plaintiffs’ statements that they stopped buying Beck’s when they learned of its brewing source, the court granted Anheuser-Busch’s motion to dismiss…
A Florida federal court has rejected a motion to dismiss in a case accusing Bodacious Foods of labeling its cookies as “all natural” despite containing sugar, canola oil, dextrose, corn starch, and citric acid, which the plaintiff alleges should preclude Bodacious from using the “natural” label. Dye v. Bodacious Food Co., No. 14-80627 (S.D. Fla., order entered September 9, 2014). Bodacious argued that the U.S. Food and Drug Administration (FDA) should have primary jurisdiction over the case, but the court disagreed, finding that FDA has declined to regulate the use of “natural” in food labeling. The cookie company also argued that its inclusion of all ingredients on the label was clear and not misleading, but the court found it “plausible that a consumer might rely on the ‘all natural’ representation without scrutinizing the ingredients or, alternatively, that a consumer might incorrectly believe that sugar, canola oil, dextrose, corn starch, and citric…
The Ninth Circuit Court of Appeals has denied a request for interlocutory review of a class certification ruling in an action alleging that Blue Diamond Growers’ almond milk is mislabeled as “All Natural” and the company hides its added sugar content by listing “evaporated cane juice” (ECJ) on its label instead. Blue Diamond Growers v. Werdebaugh, No. 14-80084 (9th Cir., order entered August 22, 2014). Additional details about the suit appear in Issue 525 of this Update. Blue Diamond challenged the district court’s ruling that the class was ascertainable, arguing that the decision “exacerbates a split of authority amongst district courts in this Circuit over the threshold showing that putative class representatives must make to demonstrate an ascertainable class in food mislabeling cases. The Third Circuit Court of Appeals—the only circuit to squarely resolve the issue—holds that sales records or other reliable evidence of product purchases must be available for a…
A district court erred in denying class certification and granting summary judgment to Sturm Foods and its parent company Treehouse Foods in a putative class action accusing the coffee manufacturer of misleading consumers to believe its Keurig-compatible coffee pods contained high-quality coffee rather than low-quality instant coffee, the Seventh Circuit Court of Appeals has decided. Suchanek v. Sturm Foods, Inc., No. 13-3843 (7th Cir., order entered August 22, 2014). The court found that the district court’s reasoning for denying class certification would make consumer class actions nearly impossible. Combined from four separate consumer protection lawsuits, the case centers on Sturm’s Grove Square Coffee (GSC) pods. The Keurig K-Cup typically contains ground coffee beans and a filter system, but the filter technology was protected by a patent until 2012. In 2010, Sturm began manufacturing pods that could be used in Keurig brewers, but to avoid infringing the patent, the company apparently…
Health Canada has announced the implementation of new rules requiring mechanically tenderized beef (MTB) products to be labeled as such. Effective August 21, 2014, the mandatory labeling requirements—which previously applied only to federally registered producers of MTB cuts—now cover “all industry sectors selling uncooked MTB to other industry members or consumers,” including retailers, butcher shops, meat processors, and importers. Under the new rules, the labels must also include instructions for safe cooking that “emphasize the importance of cooking MTB to a minimum internal temperature of 63°C (145°F) and turning over mechanically tenderized steaks at least twice during cooking to kill harmful bacteria.” “Without clear labels, it is difficult for consumers to know which beef products have been mechanically tenderized,” said Minister of Health Rona Ambrose in an August 21, 2014, press release. “Today’s announcement, along with new industry labelling guidelines we have released, will help Canadians know when they are…
