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Three California residents have filed a putative class action against food retailer Trader Joe’s in federal court, alleging three different types of misleading labeling claims: using the terms “evaporated cane juice” or “organic evaporated cane juice,” identifying as “natural” or “no added coloring or preservatives” foods that contain added preservatives and artificial colors, and representing non-dairy calcium products as “milk.” Gitson v. Trader Joe’s Co., No. 13-1333 (N.D. Cal., filed March 25, 2013). The plaintiffs claim that the company’s “labeling, advertising and marketing as alleged herein are false and misleading and were designed to increase sales of the products at issue. Defendant’s misrepresentations are part of an extensive labeling, advertising and marketing campaign, and a reasonable person would attach importance to Defendant’s misrepresentations in determining whether to purchase the products at issue.” The complaint outlines the applicable Food and Drug Administration (FDA) regulations that the defendant allegedly violated, noting that…

The Animal Legal Defense Fund (ALDF) and Compassion Over Killing have reportedly filed a complaint in a California federal court against the Food and Drug Administration, U.S. Department of Agriculture and Federal Trade Commission claiming that the agencies have failed to regulate animal-welfare labeling on egg cartons. According to ALDF, rulemaking petitions were filed in 2006 and 2007 asking for egg production methods to be fully disclosed on every carton of eggs sold in the United States. The agencies have not only allegedly failed to take action on these requests, they have also apparently failed to take action against “the often-misleading claims and deceptive imagery widely found on egg cartons.” The plaintiffs seek a court order requiring the agencies to adopt rules that would mandate that producers clearly label their egg cartons with egg production methods, including “Eggs from Caged Hens.” See ALDF News Release, March 28, 2013.

According to a news source, U.K. High Court Justice Michael Briggs has ordered New York-based Chobani to change its “Greek” yogurt labels, finding that they mislead more than 50 percent of British consumers into believing that it was made in Greece. Company rival Fage brought the lawsuit to “restrain Chobani from passing off its American-made yoghurt in England and Wales under the description Greek yoghurt.” The court apparently determined that “the very small print used on the rear of Chobani’s pots” stating that the products are made in the United States was “nowhere near sufficient” to alert people to their true origin. Chobani claimed that the “Greek” designation was a reference to how the product is made and not to its country of origin. Danone, which also makes the thickened, strained yogurt products, reportedly indicated that it was considering the implications of the ruling; it was temporarily barred in the…

U.S. Rep. Cathy McMorris Rodgers (R-Wash.) has introduced legislation (H.R. 1249) that would amend the federal Food, Drug, and Cosmetic (FD&C) Act “to improve and clarify certain disclosure requirements for restaurants, similar food retail establishments, and vending machines.” Titled the “Common Sense Nutrition Disclosure Act of 2013,” the bill would classify a restaurant or similar retail food establishment subject to federal menu labeling laws as one “that derives more than 50 percent of its total revenue from the sale of food of the type described” by the FD&C Act. Touted as a means to lessen the regulatory burden on some retailers, the legislation would, among other things, (i) strike from the FD&C Act language requiring restaurants, retail food establishments and vending machines to list “the number of calories contained in the standard menu item, as usually prepared and offered for sale” and instead insert language specifying that these establishments must…

According to the Food and Drug Administration (FDA), a federal court has approved a consent decree with Clifton, New Jersey-based Butterfly Bakery, Inc. over claims that it distributed misbranded food products, such as muffins and snack cakes. United States v. Butterfly Bakery Inc., No. 13-669 (D.N.J., order entered March 5, 2013). Under the agreement, the bakery will be unable to process or distribute food until it complies with the Food, Drug, and Cosmetic Act. FDA and state testing apparently showed that foods labeled as “sugar free” contained sugar, and some products contained three times the amount of declared or labeled sugar and two times the amount of fat or saturated fat. See FDA News Release, March 13, 2013.

The company that makes the Muscle Milk® line of nutrition products has agreed to settle putative class claims that it misrepresented the products’ nutritional value. Delacruz v. CytoSport, Inc., No. 11-3532 (N.D. Cal., motion to approve settlement filed March 7, 2013). Details about the complaint appear in Issue 403 of this Update. A court order leaving just one issue in the case—an allegation that labeling claims of “healthy fats” in a Muscle Milk® product could deceive because a reasonable consumer would expect the product to contain unsaturated and not saturated fats—is summarized in Issue 436 of this Update. Under the proposed agreement, the company would pay the equivalent of $5.275 million for awards to the named plaintiff and class members, a cy pres award, injunctive relief, class notice and settlement administration costs, attorney’s fees and expenses, and products in kind. Claimants with proof of purchase would receive up to $30 each;…

Vermont’s House Agriculture Committee has reportedly passed by an 8-3 vote legislation (H.112) that would require producers to label raw agricultural and processed food products that are genetically engineered. Milk, meat and ready-to-eat foods would be exempt from the labeling. The bill now moves to the House Judiciary Committee for consideration. If passed, the legislation would evidently take effect 18 months after at least two other states adopt similar proposals, or 24 months after its passage in Vermont—whichever comes first. Previous versions of GMO labeling bills introduced in Vermont in 2011 and 2012 were defeated. See Addison County Independent, March 4, 2013.

According to a recent study conducted by the nonprofit ocean conservation group Oceana, as much as one-third of seafood sold in restaurants and grocery store is mislabeled. From 2010 to 2012, Oceana evidently collected more than 1,200 seafood samples from 674 retail outlets in 21 states to determine if they were correctly labeled. After conducting DNA tests, researchers allegedly found that one-third (33 percent) of the 1,215 samples analyzed nationwide were mislabeled under U.S. Food and Drug Administration (FDA) guidelines. Oceana reports that, of the most commonly collected fish types, samples sold as snapper and tuna had the highest mislabeling rates (87 and 59 percent, respectively), with the majority of the samples identified by DNA analysis as something other than what was found on the label. Halibut, grouper, cod, and Chilean seabass were mislabeled between 19 and 38 percent of the time, while lower levels of mislabeling were noted among salmon (7…

A U.S. attorney in Illinois has announced charges filed against two companies and five individuals in a five-year investigation of imports that allegedly circumvented $180 million in anti-dumping duties on honey from China and involved purportedly “adulterated” honey containing the antibiotics chloramphenicol and tetracycline. Groeb Farms, Inc., described as the largest industrial honey supplier in the United States, knowingly avoided more than $78.8 million in antidumping duties by buying mislabeled honey imported from China and has agreed to pay a $2 million fine and “to dispose of any illegally-entered Chinese-origin honey in its possession.” It will also institute a corporate compliance program to ensure supply chain integrity and conduct “reasonable inquiries to safeguard against any illegal activity.” Jun Yang, Urbain Tran and Hung Yi Lin were all charged with brokering or transporting illegal Chinese-origin honey in the United States. Yang will plead guilty and has agreed to a fine of $250,000…

A federal court in California has denied in part and granted in part the defendants’ motion to dismiss putative class claims that many of their food products are sold with labels that are unlawful and/or mislead consumers. Ivie v. Kraft Foods Global, Inc., No. 12-2554 (N.D. Cal., order entered February 25, 2013). Among the products are chewing gum, crackers, granola, fruit punch, cheese, nut mix, lemonade, stuffing mix, Jell-O®, and Easy Mac®. The labels at issue include the following statements: “natural,” “all natural,” “no artificial” colors/sweeteners/flavors/preservatives/ingredients, nutrient content, health claims, “sugar free,” “sugarless,” certain serving sizes, and “evaporated cane juice.” The allegations are also apparently based on products the named plaintiff did not purchase. The court determined that (i) the plaintiff sufficiently alleged an injury in fact by claiming she would not have purchased the products but for the alleged unlawful or misleading labels; (ii) the plaintiff cannot bring claims relating…

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