The Michigan Liquor Control Commission (MLCC) has rescinded “the approval of all alcohol energy drinks [AEDs],” citing “widespread community concerns aired by substance abuse prevention groups, parent groups and various members of the public, as well as the Food and Drug Administration’s (FDA’s) decision to further investigate these products.” According to a November 4, 2010, press release, the commission also believes that AED packaging “is often misleading, and the products themselves can pose problems by directly appealing to a younger customer, encouraging excessive consumption, while mixing alcohol with various other chemical and herbal stimulants.” The MLCC’s order gives retailers 30 days to remove AEDs from commerce and includes a list of affected products. “The Commission’s concern for the health, safety and welfare of Michigan citizens and the fact that there is not enough research to validate that these products are safe for consumption has made me believe that until further…
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A plaintiffs’ firm has announced a $25 million partial settlement in an antitrust class action “brought on behalf of direct purchasers of shell eggs and egg products.” In re: Processed Eggs Antitrust Litigation, MDL No. 2002 (E.D. Pa.). According to Hausfeld LLP, plaintiffs alleged “a near industry-wide, price-fixing conspiracy among egg farmers which raised the price of shell eggs and egg products in violation of the Sherman Antitrust Act.” The lawsuit specifically claimed that the United Egg Producers, United States Egg Marketers and other trade associations coordinated a conspiracy “to restrict egg supply through cage space requirements, as well as coordinated molting schedules and hen reductions, and exported eggs at a loss in order to reduce domestic supplies and raise prices.” The three settling defendants—Land O’Lakes, Inc., Moark, LLC, and Norco Ranch Inc.—have reportedly agreed “to provide significant cooperation to the plaintiffs as they pursue their claims against the remaining, non-settling…
Pennsylvania-based chocolate maker Hershey Co. has filed a Lanham Act lawsuit against Williams-Sonoma Inc., alleging that the kitchen product retailer is marketing and selling a baking pan that infringes Hershey’s “Chocolate Bar Design Mark,” a purportedly distinctive rectangle scored into 12 smaller rectangles. The Hershey Co. v. Williams-Sonoma, Inc., No. 10-1011 (M.D. Pa., filed May 12, 2010). According to the complaint, Hershey has been selling its chocolate bar for more than 100 years and registered its design in 1968. Hershey alleges that defendant’s unauthorized use of the design mark will cause confusion and that potential purchasers and consumers are likely to believe the infringing brownie pan is licensed by or affiliated with Hershey or its products. As an example of that confusion, the complaint quotes alleged online consumer comments about the baking pans: “you can make your own little hershey’s miniatures”; “It’s like a Hershey’s bar with individual brownies”; and “Whether you’re…
Facing budget shortfalls in the upcoming fiscal year, several state and city legislatures are reportedly considering a tax on sugar-sweetened beverages. Kansas Senator John Vratil (R-Leawood) this week proposed a bill (S.B. 567) that would tax such products, including energy and sports drinks, at the rate of one penny per teaspoon of sugar. According to its proponents, the measure would add a dime to the cost of a typical 12-ounce soft drink and raise approximately $90 million per year. “The thinking is No. 1, we need money,” Vratil was quoted as saying. “But perhaps just as importantly, obesity is a real, growing problem.” See The Kansas City Star, March 9, 2010. In addition, Philadelphia Mayor Michael Nutter has introduced a FY 2010-11 budget that includes a 2-cent-per-ounce tax on the distribution of sugary drinks. Media sources have apparently likened the measure to current excise taxes or the 10 percent “liquor-by-the-drink” tax.…
A federal court in Pennsylvania has certified for immediate appeal its denial of the defendants’ motion to dismiss in multidistrict litigation (MDL) alleging price-fixing by chocolate manufacturers. In re Chocolate Confectionary Antitrust Litig., MDL No. 1935 (M.D. Pa., April 8, 2009). The defendants in these 87 consolidated lawsuits reportedly supply 75 percent of the chocolate candy consumed by Americans each year. The lawsuits allege that the companies conspired to raise prices in 2002, 2004 and 2007 by as much as 10 percent and rely on information generated by government investigations in the United States and Canada to bolster their conspiracy allegations. At least one company spokesperson has been quoted as saying, “You can’t just infer the existence of a price-fixing conspiracy from the fact that independent competitors in concentrated industries independently choose to raise their prices.” The question certified to the Third Circuit Court of Appeals is whether the U.S.…
