A federal court in New York has dismissed with prejudice a putative class action alleging that Pepsi-Cola Co. falsely and deceptively used the term "diet" for its Diet Pepsi, leading consumers to believe that the beverage would help them lose weight or assist with "healthy weight management." Manuel v. Pepsi-Cola Co., No. 17-7955 (S.D.N.Y., entered May 17, 2018). Following three federal district court dismissals of nearly identical claims, the court found that "no reasonable consumer would understand a soft drink labeled as 'diet' to be a weight-loss product." "'Diet' immediately precedes 'Pepsi,' and thereby connotes a relative health claim—that Diet Pepsi assists in weight management relative to regular Pepsi," the court held. Although "diet" is used to identify other weight-loss products, "in the context of soft drinks, the term unambiguously signals reduced calorie content relative to the non-diet version of the drink in question." Ruling that a cause of action for false or misleading…
Tag Archives New York
A New York plaintiff alleges Halo Top ice cream is falsely and deceptively labeled because it does not prominently display the term "light" on its labels, purportedly misleading consumers into believing it is regular full-fat ice cream. Berger v. Eden Creamery, LLC, No. 18-2745 (E.D.N.Y., filed May 9, 2018). Among other allegations, the plaintiff asserts that consumers associate the word "halo" with yellow, the color of butter and cream; that Eden Creamery fails to comply with federal laws requiring the identity statement "light ice cream" to be displayed prominently on the front label; and that the location where the phrase is displayed is "in an area of the container prone to ice or condensed water obstructing it." In addition, the complaint alleges that Eden Creamery's statements that Halo Top is "All Natural" and contains "No Artificial Sweeteners" are false and misleading because the products contain a synthetic form of the sugar…
Kellogg Co. faces a putative class action alleging its Salt & Vinegar Pringles are mislabeled as containing “No Artificial Flavors” because the nutrition label identifies two artificial ingredients. Marotto v. Kellogg Co., No. 18-3545 (S.D.N.Y., filed April 20, 2018). The complaint asserts that although both sodium diacetate and malic acid can occur in nature, the sodium diacetate used in the product is “a synthetic industrial chemical manufactured in a chemical refinery from carbon monoxide and industrial methanol" while the malic acid is “d-1-malic acid . . . manufactured in petrochemical plants from benzene or butane.” Alleging unfair and deceptive business practices, false advertising and misrepresentation, the plaintiff seeks class certification, corrective advertising, damages and attorney’s fees. In March 2018, a federal court in California refused to dismiss a similar lawsuit against Kellogg, finding the plaintiffs had adequately pleaded reasonable customer confusion.
A consumer has filed a putative class action alleging the labels for Crystal Farms Refrigerated Distribution Co.'s Diner’s Choice mashed potatoes assert that the products are made with real butter and fresh whole potatoes while the products contain margarine and preservatives. Reyes v. Crystal Farms Refrigerated Distrib. Co., No. 18-2250 (E.D.N.Y., filed April 16, 2018). The complaint alleges that despite the prominent package labeling, the products’ nutrition labels list margarine as the third ingredient, misleading consumers who expect the potatoes to contain only butter. The complaint also asserts that “fresh mashed potatoes have a shelf life between 7 and 10 days. The Products’ 3-month shelf life is due to artificial chemical preservatives including sodium benzoate, disodium pyrophosphate, potassium sorbate and sodium bisulfite.” Alleging violations of New York’s General Business Law, negligent misrepresentation and fraud, the plaintiff seeks class certification, injunctive relief, damages and attorney’s fees.
A consumer has filed a putative class action alleging That’s It Nutrition deceptively labels and advertises its snack bars’ ingredients by using collective names for the fruits and vegetables they contain. Medina v. That’s It Nutrition, LLC, No. 18-2022 (E.D.N.Y., filed April 4, 2018). The complaint alleges that That's It fruit bar labels list generic names rather than specific ingredients; for example, one bar's label lists “apples” without specifying whether the ingredient is apple powder, puree or some other processed form of the fruit. “If the defendant began the bar production process with whole intact fruits, the ingredient list would indicate the presence of an additional binding ingredient such as a gel, pectin, juice concentrate or syrup, needed to keep the individual fruit matter together,” the complaint asserts. The label representations, which include “That’s it,” “All Natural,” “No Preservatives,” “Raw,” “No Purees or Juices,” “2 ingredient snack,” “Just Fruit” and…
The Second Circuit has affirmed the dismissal of a putative class action that alleged Abbott Laboratories Inc. falsely represented its Similac Advance Organic Infant Formula as organic, ruling the plaintiffs’ state-law claims are barred by the Organic Foods Production Act (OFPA). Marentette v. Abbott Labs. Inc., No. 17-0062 (2d Cir., entered March 23, 2018). The plaintiffs alleged that Abbott misled consumers because the product contained ingredients not permitted by the OFPA. The appeals court asked the U.S. Department of Agriculture (USDA) to submit an amicus brief addressing (i) whether the certification process requires the certifying agent to review and approve the ingredients of the final product to be labeled organic and (ii) whether products made in accordance with a properly certified plan will necessarily comply with the OFPA. According to the decision, USDA stated that “certifying agents review and approve both the process and the ingredients of the final product…
A federal court in New York has dismissed with prejudice a shareholder suit against Chipotle Mexican Grill Inc., finding the plaintiffs were unable to allege that the company made “demonstrably false” statements about foodborne illness outbreaks linked to its restaurants. Ong v. Chipotle Mexican Grill, No. 16-0141 (S.D.N.Y., entered March 22, 2018). The plaintiffs alleged that Chipotle and three of its executives misled shareholders and the public in 2015 and 2016 statements after outbreaks of norovirus, E. coli and Salmonella were linked to its restaurants. In addition to finding Chipotle’s annual reports contained sufficient disclosures about its processes, the court found that the plaintiffs failed to adequately allege that executives who knew about the outbreaks' connection to Chipotle sold more than $214 million in stock because the stock sales occurred months before the outbreaks were linked to the company.
Rebbl Inc. faces a putative class action alleging its “super herb” beverages are falsely advertised and labeled because the claims made for their ingredients are “not supported by sound scientific evidence.” Richburg v. Rebbl Inc., No. 18-1674 (E.D.N.Y., filed March 16, 2018). The complaint alleges that beverages in Rebbl’s product line of “Elixirs” and “Proteins” contain several ingredients—turmeric, reishi, maca, matcha, ashwaganda, medium chain triglyceride oil and coconut milk—that the company falsely asserts can reduce stress and improve beauty, health or wellness. Claiming violations of New York’s General Business Law, breach of warranties, fraud and unjust enrichment, the plaintiff seeks class certification, injunctive relief, damages and attorney’s fees.
I Heart Foods Inc. faces a putative class action alleging that its "I Heart Keenwah" Quinoa Puffs contain mostly rice and pea protein rather than the quinoa implied by the product name. Ransom v. I Heart Foods Inc., No. 18-1465 (E.D.N.Y., filed March 8, 2018). According to the complaint, Quinoa Puffs are made from quinoa flour, brown and white rice flours and pea protein concentrate. Manufacturing methods for “puffed extrusion foods” require ingredients that have a low fat and high starch content, the plaintiff asserts, and the high levels of lipids in quinoa suggest that the product is mostly made of rice. In addition, the complaint argues that because pea protein has five times the amount of protein contained in quinoa, the label’s claim of five grams of protein per serving is likely due to the pea protein. Alleging violations of New York consumer-protection laws, breach of warranties, fraud and unjust enrichment,…
A New York federal court has issued a decision seemingly aiming to spur action from the U.S. Food and Drug Administration (FDA), which has purportedly exhibited “no discernible activity” to establish a definition of “natural.” In re Kind LLC “Healthy and All Natural" Litig., No. 15-2645 (S.D.N.Y., entered March 2, 2018). Kind LLC previously filed motions to dismiss or stay claims in multidistrict litigation alleging that its labeling was false and misleading. After allowing stays, the court has indicated that it might proceed with the case without waiting for input from FDA or the U.S. Department of Agriculture (USDA) on the definitions of "healthy" and "natural." The court first found that the consumers' challenge to Kind's claim that its products are made without genetically modified organisms (GMOs) was not preempted by the National Bioengineered Food Disclosure Standard, holding that the relevant state consumer-protection statutes “do not impose a GMO standard or requirement.…
