According to a news source, the New York Court of Appeals, the state’s highest court, has agreed to hear New York City’s appeal of a decision striking down a board of health rule that would have imposed caps on the size of sugar-sweetened beverages sold at certain venues. Details about the intermediate appellate court opinion affirming a lower court’s invalidation of the rule under separation-of-powers principles appear in Issue 492 of this Update. Mayor Michael Bloomberg responded to the court’s ruling by stating, “The related epidemics of obesity and diabetes are killing at least 5,000 New Yorkers a year and striking hardest in black and Latino communities and low-income neighborhoods. New York City’s portion cap rule would help save lives, and we are confident the appeals court will uphold the Board of Health’s rule.” The case is expected to be argued after January 1, 2014. See Law360, October 17, 2013.…
Tag Archives New York
New York Attorney General Eric Schneiderman recently announced that 19 companies have agreed to stop hiring search engine optimization (SEO) and marketing entities to write fake online reviews after an undercover investigation into digital “astroturfing” allegedly found that such practices violate “multiple state laws against false advertising.” According to a September 23, 2013, press release, “Operation Clean Turf” reportedly revealed that companies posting fake consumer reviews on Yelp, Google Local and similar sites often used techniques to conceal their identifies, including “creating fake online profiles on consumer review websites and paying freelance writers from as far away as the Philippines, Bangladesh and Eastern Europe for $1 to $10 per review.” The investigation also identified SEO companies that purportedly offered to produce fake reviews on behalf of their clients as part of their reputation management services. “Consumers rely on reviews from their peers to make daily purchasing decisions on anything from…
A multidistrict litigation (MDL) court in New York has granted in part the motion to dismiss filed in a putative class action alleging that Frito-Lay North America and PepsiCo., its parent, mislead consumers by labeling various Tostitos®, SunChips® and Fritos Bean Dip® products as “all natural” when they contain genetically modified organisms (GMOs). In re Frito-Lay N. Am., Inc. All Natural Litig., MDL No. 2413 (E.D.N.Y., order entered August 29, 2013). The court dismissed PepsiCo, Inc. from the litigation without prejudice, finding that the complaint failed to allege sufficient facts to support its liability. Among other matters, the court refused to dismiss the suit on the basis of (i) the primary jurisdiction doctrine (noting that the issues do not require specialized knowledge to resolve and that “the FDA [Food and Drug Administration] is unlikely to respond in a timely manner to any referral from this Court”), (ii) preemption (finding that FDA’s…
New York City has filed an appeal from an intermediate appellate court ruling finding that the city Board of Health exceeded its authority by adopting a regulation restricting the size of sugar-sweetened soft drinks sold in certain venues. N.Y. Statewide Coal. of Hispanic Chambers of Commerce v. NYC Dep’t of Health & Mental Hygiene, No. ___ (N.Y., appeal filed August 2, 2013). Details about the intermediate appellate court decision appear in Issue 492 of this Update. According to the city’s motion for leave to appeal, the Court of Appeals erred in (i) applying separation-of-powers doctrine to a local administrative agency; the city argues that municipalities determine their governmental structure and often create bodies with overlapping powers; (ii) ruling that the Board of Health lacks legislative powers when it derives its authority from charters explicitly recognizing those powers, and case law has defined the board as “the sole legislative authority within the City…
The Judicial Panel on Multidistrict Litigation (JPML) has denied transfer to a multidistrict litigation (MDL) court of consumer-fraud lawsuits involving Capatriti brand “100% Pure Olive Oil” made by Kangadis Food Inc. d/b/a The Gourmet Factory and numerous snack, cereal, protein bar, and frozen entrée products made by the Kashi Co. In re Capatriti Brand Olive Oil Mktg. & Sales Practices Litig., MDL No. 2469; In re Kashi Co. Mktg. & Sales Practices Litig., MDL No. 2456 (J.P.M.L., decided August 6, 2013). According to the court, centralization is not appropriate in the olive oil suit because the Southern District of New York action has made “significant progress” and the number of actions pending in adjacent districts is small with a “correspondingly limited number of involved counsel and courts.” Because the plaintiff in a New Jersey action has considered voluntarily transferring his action to New York, the JPML found that alternatives to centralization…
Applying separation-of-power principles that defeated a state administrative body’s effort to regulate smoking in public places, Boreali v. Axelrod, 71 N.Y.2d 1 (N.Y. 1987), a New York appeals court has affirmed a lower court ruling invalidating the “Portion Cap Rule” promulgated by the New York City Department of Health and Mental Hygiene (Department). In re N.Y. Statewide Coal. of Hispanic Chambers of Commerce v. N.Y.C. Dept. of Health & Mental Hygiene, No. 2013 NY Slip Op. 05505 (N.Y. App. Div., decided July 30, 2013). The rule would have limited the sale of certain sugary soft drinks to 16 ounces in food service establishments over which the Department has authority under a memorandum of understanding with the state’s Department of Agriculture and Marketing. Thus the rule would have applied to restaurants, delis, fast-food franchises, movie theaters, stadiums, and street carts, but not to grocery stores, convenience stores, corner markets, gas stations, and…
A federal court in New York has determined that while plaintiffs alleging they were sold olive-residue oil, or Pomace, instead of the “100% Pure Olive Oil” appearing on the labels of The Gourmet Factory’s Capatriti-brand products could not maintain a cause of action under the Magnuson-Moss Warranty Act, their claims did exceed the $5 million threshold for maintenance of the action in federal court under the Class Action Fairness Act (CAFA). Ebin v. Kangadis Food Inc. d/b/a The Gourmet Factory, No. 13-2311 (S.D.N.Y., order entered July 26, 2013). The plaintiffs apparently based their amount-in-controversy allegation on documents that the defendant submitted in parallel litigation brought by an olive oil trade association. Details about that suit appear in Issues 470, 482 and 483 of this Update. Thus the court rebuffed the defendant’s attempt to fault the plaintiffs for failing to conduct an independent investigation into the amount-in-controversy before filing the complaint,…
A New York resident has filed a putative class action against Boar’s Head Provisions Co., alleging that the company’s advertising and labeling representations—“47% lower sodium,” “42% lower sodium,” and “40% lower sodium”—for some of its deli meats, including turkey breast and ham, contain as much sodium as its regular deli meat products and a higher percentage of sodium than stated when compared to U.S. Department of Agriculture (USDA) reference products. Mackles v. Boar’s Head Provisions, Co., Inc., No. 13-4855 (S.D.N.Y., filed July 12, 2013). According to the complaint, the defendant’s representations are inaccurate by a factor of more than 10 percent. The plaintiff also alleges that when he asked the company about the lower-sodium claims on its product labels, he received a letter stating that they “were submitted to and approved by the USDA.” On further investigation, the plaintiff allegedly learned from USDA that companies must ensure labeling accuracy, and…
Answering two of the questions certified to it by the Second Circuit Court of Appeals, New York’s high court has determined that Starbucks Corp. can, under the state’s Labor Law, distinguish among its employees for purposes of sharing the tips customers leave in a jar on the counter. Barenboim v. Starbucks Corp., Winans v. Starbucks Corp., No. 122 (N.Y., decided June 26, 2013). Starbucks’ policy requires the distribution of pooled tips to baristas and shift supervisors. Both classes of employees spend most of their time performing customer-oriented services, such as taking orders, making and serving beverages and food, operating the cash register, cleaning tables, and stocking products. Both also work part-time and are paid hourly. Shift supervisors have minor supervisory responsibilities. Starbucks does not allow assistant store managers or store managers to receive any of the pooled tips. Both classes work full-time and are eligible for bonuses and benefits, such as…
A salesman has reportedly filed a discrimination lawsuit against his former employer in a New York state court alleging that the employer, who had invited the salesman to return to his job in a frame shop, asked him to leave when he saw how much weight the salesman had gained since leaving the shop in 2008. Bogadanove v. Frame It In Brooklyn, No. ___ (N.Y. Sup. Ct., Kings Cty., filing date n/a). According to the complaint, former employer Jerry Greenberg took one look at Seth Bogadanove on his return and said “Oh my God, what happened to you, you got so fat!” When Bogadanove attempted to explain that medication he was taking caused the weight gain, Greenberg allegedly said, “Oh my God, I am so sorry, I can’t use you, there is no way you can work here at your size. You wouldn’t fit between the aisles.” Bogadanove then purportedly…
