The U.K. Advertising Standards Agency (ASA) has upheld a complaint claiming that a TV advertisement with a “prices may vary” disclaimer was misleading because the complainant was unable to purchase the product for the stated price. Created by Kentucky Fried Chicken (Great Britain) Ltd. (KFC), the commercial in question indicated that families could “save a fiver” by purchasing “the new KFC Family Burger Box,” instead of buying the components a la carte. On-screen text apparently clarified, “Item[] shown £20.51 if bought individually. Prices may vary.” According to ASA, Kentucky Fried Chicken explained that the phrase “prices may vary” “referred to both the a la carte menu pricing of individual items, the price of the Family Burger Box and the exact saving made between those two prices.” To convey this information, the company chose the text “prices may vary” rather than “price may vary” “to be clear that this referred to…
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The Yale University Rudd Center for Food Policy & Obesity has released an updated report on food advertising to children and teens that criticizes the fast-food industry for failing to meet its own marketing standards. Funded by the Robert Wood Johnson Foundation, “Fast Food FACTS 2013” claims that fast-food restaurants spent $4.6 billion on total advertising in 2012, an 8 percent increase over 2009. In particular, the report notes that even as “older children’s total exposure to fast food TV and internet advertising declined,” “fast food marketing via social media and mobile devices—media that are popular with teens—grew exponentially.” According to the Rudd Center, which reportedly surveyed the menus and marketing practices of 18 top fast-food restaurants in the United States, children aged 6-11 saw 10 percent fewer fast-food TV ads in 2012 compared to 2009, while many chains discontinued popular websites geared toward younger audiences. At the same time,…
A federal court in California has given final approval to the settlement of a wage-and-hour class action against Starbucks Corp., including less than half of what plaintiffs’ counsel originally requested as attorney’s fees. York v. Starbucks Corp., No. 08-7919 (C.D. Cal., decided October 29, 2013). Starbucks apparently objected to the request for nearly $4.5 million, excluding nearly $250,000 in unreimbursed costs, characterizing it as “astonishing.” Thereafter, the parties agreed to attorney’s fees and costs of $1.9 million, and the court found the request reasonable. Under the agreement, 14,800 employees will receive payments of up to $900, for a total of $3 million, for alleged denial of statutorily mandated meal breaks and wage statements that failed to list the applicable overtime rate in violation of the California Labor Code. See Law360, October 28, 2013.
A recent study asserts that the energy and sodium content of main entrées served in U.S. chain restaurants has remained unchanged over a one-year period, despite the enactment of federal regulations requiring menu labeling. Helen Wu & Roland Sturm, “Changes in the Energy and Sodium Content of Main Entrées in US Chain Restaurants from 2010 to 2011,” Journal of the Academy of Nutrition and Dietetics, October 2013. Relying on data collected from chain restaurant Websites between spring 2010 and spring 2011, the study’s authors noted that “mean energy and sodium did not change significantly overall, although mean sodium was 70 mg lower across all restaurants in added vs removed menu items at the 75th percentile.” They also reported that even though fast-food chains reduced the mean energy in children’s menu entrées by 40 kcal, the adult-sized dishes with reduced sodium levels “far exceeded recommended limits,” while not all significant changes…
As the fiscal year came to a close and on the eve of the federal government shutdown, the Equal Employment Opportunity Commission (EEOC) filed nearly two dozen employment discrimination lawsuits including one against GMRI, Inc. alleging discrimination based on sex on behalf of a class of women employees at a Salisbury, Maryland, Red Lobster Restaurant. EEOC v. GMRI, Inc., No. 13-2860 (D. Md., filed September 30, 2013). According to the complaint, the defendant’s former culinary manager created a sexually hostile and offensive work environment for the two women who filed the complaint as well as “other similarly situated female employees” by engaging in frequent sexual touching, sexual comments, sexual advances, and vulgar sexual conduct. The conduct, which was allegedly “open and notorious and occurred on a frequent and routine basis,” was purportedly condoned by a former general manager who “himself had a history of making sexually charged and vulgar comments…
On behalf of current and former Benihana chefs, a former chef has filed an action under the Fair Labor Standards Act (FLSA) alleging that the company forced chefs to work off the clock without compensation, illegally deducted from the chefs’ tips to provide tips to employees not entitled to share them and harassed or fired the chefs if they complained about the practices. Kim v. Benihana Nat’l Corp., No. 13-62061 (S.D. Fla., filed September 20, 2013). Alleging unpaid overtime or minimum wages in the alternative, illegal tip deductions and retaliation, the plaintiff seeks an order requiring notice to all Benihana chefs, declaratory relief, damages, interest, attorney’s fees, and costs.
Citing a shortage of naturally raised beef due to last year’s drought, Chipotle Mexican Grill Inc. has apparently told media sources that it may allow its restaurants to begin using beef treated with antibiotics. Although Chipotle only reached its goal to use antibiotic- and hormone-free meat a few years ago, the company reportedly said that it plans to review its “never-ever” antibiotic policy and possibly allow suppliers to sell animals that have been treated with antibiotics “when necessary.” The policy change would still bar the use of beef from animals given antibiotics to prevent disease or promote weight gain. “Many experts, including some of our ranchers, believe that animals should be allowed to be treated if they are ill and remain in the herd,” Chipotle founder and co-CEO Steve Ells was quoted as saying. “We are certainly willing to consider this change, but we are continuing to evaluate what’s best…
According to a news source, restaurant chain T.G.I. Friday’s has agreed to make leave-policy changes affecting the employees working at its 272 company-owned facilities. The U.S. Department of Labor’s Wage and Hour Division apparently discovered violations of the federal Family and Medical Leave Act during an investigation of a company restaurant in Shreveport, Louisiana. The company had reportedly failed to reinstate an employee who took a legal leave under the law to the same or an equivalent position at the same pay and benefits, and had not allowed the employee to return immediately. The Labor Department determined that the restaurant owed the employee three weeks of lost wages. See The Kansas City Star, August 7, 2013.
According to a news source, upscale Rodeo Drive sushi restaurant Urasawa has been sued by former employees who claim they were forbidden from taking breaks and were not paid the overtime they worked. Apparently, a California Labor Department investigation has confirmed the complaints targeting chef and owner, Hiroyuki Urasawa, whose menu includes dishes served with caviar and 24-karat gold flakes and can cost a couple in excess of $1,000. Among those seeking back wages is Heriberto Zamora, who was reportedly forced to buy his own $700 set of knives when he was earning just $9 per hour. Zamora claims he was fired nine hours into his shift when he asked to go home with a fever and cough. See The New York Times, July 20, 2013.
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…
