Kraft Heinz Foods faces a trade-secret suit alleging it distributed documents containing confidential and proprietary drawings and specifications for plastic caps created by one of its long-time vendors. AptarGroup, Inc. v. Kraft Heinz Foods Co., No. 17521 (W.D. Pa., filed April 21, 2017). AptarGroup argues that Kraft distributed engineering and customer drawings providing detailed specifications for its bottle cap and closure designs documents after removing Aptar’s logos and confidentiality warnings. Aptar also asserts that among other disclosures, Kraft released specifications for its “breakthrough” snap-top cap used for Heinz’ inverted, top-down ketchup bottles. The complaint alleges that previous disclosures have included only “one or two ornamental designs, with no detailed specifications, and that Aptar notified Kraft of their breach of contract and asked Kraft to demand the return of the confidential information from all recipients. Claiming trade secret misappropriation and breach of contract, Aptar seeks a temporary restraining order, injunctive relief,…
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The California legislature is considering a bill to make the state the first in the nation to ban perfluorinated chemicals (PFCs) from restaurant food wrappers and containers. The bill proposes that food providers “shall not serve, sell, offer for sale, or offer for promotional purposes prepared food or fast food in, on, or with take-out foodservice ware or packaging that contains a fluorinated chemical.” The bill has been referred to the Committee on Environmental Safety and Toxic Materials and set for hearing on April 25, 2017. According to the Centers for Disease Control and Prevention (CDC), scientists do not have enough information to evaluate the health effects of exposure to per- and polyfluoroalkyl substances (PFAS)—a group of materials to which PFCs belong—although some studies have allegedly shown that PFAS may affect the growth of fetuses, decrease fertility and interfere with normal hormonal function, among other possible effects. Exposure to PFAS…
A consumer has filed a putative class action against Ferrara Candy Co. claiming that its packaging of Jujyfruits and other candies misleads consumers by misrepresenting the amount of candy contained in each box. Iglesias v. Ferrara Candy Co., No. 17-0849 (N.D. Cal., filed February 21, 2017). The plaintiff claims that Ferrara “shortchanges consumers” by underfilling its opaque candy boxes. In movie theaters, where boxed candies are sold, the boxes are kept behind glass showcases, the complaint asserts, and consumers have no opportunity to examine net weight, serving disclosures or other labeling until after paying for the candy. Moreover, the plaintiff claims that consumers’ purchasing decisions are heavily dependent on product packaging and that “consumers are apt to choose the larger box because they think it’s a better value.” The action includes other candy lines manufactured by Ferrara, including Lemonhead , RedHots , Chuckles , Brach’s and Atomic Fireball products. For…
Concerns about how or whether the term “healthy” should be used in food labeling and packaging prompted the U.S. Food and Drug Administration (FDA) to hold a public comment meeting on the issue on March 9, 2017. Current FDA regulations allow the use of the term “healthy,” as well as similar terms, as implied nutrient-content claims. However, the criteria for use vary for different food categories, and the criteria themselves are linked to elements of the nutrition facts panel and serving size regulations—both of which have undergone significant changes in recent years. FDA also received a citizen petition in 2015 from Kind LLC, a producer and distributor of snack bars, requesting the agency amend its regulations defining the use of the term with respect to total fat intake and emphasizing whole foods and dietary patterns instead of specific nutrients. Accordingly, FDA’s 2016 publication of “Use of the Term ‘Healthy’ in…
Two people have been convicted of conspiracy in charges related to a scheme to distribute counterfeit 5-Hour Energy drinks. United States v. Shayota, No. 15-0264 (N.D. Cal., verdict entered November 28, 2016). The couple, Joseph and Adriana Shayota, produced several million bottles of a drink manufactured under unsanitary conditions and labeled the drink with 5-Hour Energy's packaging. Before beginning that scheme, the couple reportedly bought 5-Hour Energy drinks intended for the Mexican market, repackaged them and sold them in the United States for a price well below the retail price. Six other defendants pleaded guilty to similar charges, and 5-Hour Energy maker Living Essentials won a $20-million civil judgment in March 2016. See Los Angeles Times, November 30, 2016. Issue 624
A New York federal court has dismissed a consumer’s lawsuit alleging Mondelez International sells its Sour Patch Watermelon candy with unpermitted slack fill. Izquierdo v. Mondelez Int’l Inc., No. 16-4697 (S.D.N.Y., order entered October 26, 2016). The lead plaintiff had asserted that the box he purchased contained 28 pieces of candy but had enough space for 50 pieces. Additional details about the complaint appear in Issue 609 of this Update. After finding that the plaintiff did not have standing for an injunction, the court turned to the candy company’s arguments, dismissing its assertion that the accurate net weight released it from liability. Further, the court found it inappropriate to consider at the motion-to-dismiss stage whether a consumer could determine the contents of the package by shaking or squeezing it. The court was persuaded by Mondelez’s argument that the plaintiffs had failed to state a claim because they did not clarify what…
A D.C. federal court has denied McCormick & Co.’s motion to dismiss a competitor’s lawsuit alleging the company’s black pepper packaging contains too much slack fill. In re McCormick & Co., Inc., Pepper Prods. Mktg. & Sales Practices Litig., No. 15-1825 (D.D.C., order entered October 17, 2016). The lawsuit is part of multidistrict litigation joining several consumer class actions with similar allegations. McCormick challenged Watkins Inc.’s standing to sue and asserted that the company failed to state a claim under the Lanham Act, arguing that its packaging does not constitute advertising. The court disagreed, noting, “McCormick argues that size of its pepper tins is not commercial speech, but it is difficult to understand how the size of a package or container could possibly not be considered a form of ‘advertising or promotion.’ [] The size of a package signals to the consumer vital information about a product and is as…
Members of the European Parliament have backed by a 559 to 31 vote, with 26 abstentions, a non-binding resolution asking the EU to “further harmonize the safety requirements for food contact materials [FCMs], which are largely used in everyday life in the form of food packaging, kitchen utensils and tableware.” According to a news release, “Only four out of listed 17 food contact materials are currently covered by specific safety measures foreseen in existing EU framework legislation: plastics, ceramics, regenerated cellulose and ‘active and intelligent’ materials.” In particular, the report on the implementation of the Food Contact Materials Regulation ((EC) No 1935/2004) calls on the Commission to consider identifying bisphenol A (BPA) as one of the substances classified as a substance of very high concern (SVHC) under REACH regulations. It also asks the European Commission to prohibit the use of bisphenol S (BPS) in FCMs “as a substitute for Bisphenol…
France has reportedly passed a ban on plastic cups, knives, forks and plates as part of an ecological initiative, Energy Transition for Green Growth. The prohibition, which takes effect in 2020, targets the nearly 5 billion plastic cups discarded annually in France. The country is reportedly the first to target plastic dishware. A Brussels-based organization representing European packaging manufacturers, Pack2Go Europe, has reportedly vowed to fight the ban to prevent similar measures from passing in other European countries. “We are urging the European Commission to do the right thing and to take legal action against France for infringing European law,” Pack2Go Europe Secretary General Eamonn Bates told The Associated Press. “If they don’t, we will.” See Associated Press, September 12, 2016; The Local, September 13, 2016. Issue 617
A consumer has filed a putative class action alleging that EN-R-G Foods’ Honey Stinger Gluten Free Organic Maple Waffles do not contain maple syrup as implied by the product’s name and packaging. Johnson v. EN-R-G Foods, No. 6258 (C.D. Cal., filed August 19, 2016). The waffle package features “a prominent image of a maple leaf and maple syrup splashed on the waffle,” leading consumers to believe that the product ingredients include maple syrup, the plaintiff asserts. For allegations of fraudulent inducement, unjust enrichment and violations of California law, he seeks class certification, damages, an injunction and attorney’s fees. Issue 615
