A Texas federal court has dismissed multidistrict litigation (MDL) alleging that Whole Foods Market Inc. lists incorrect amounts of sugar on its yogurt labels, concluding the Consumer Reports data relied on by the plaintiffs did not meet federal standards. In re Whole Foods Mkt. Inc. Greek Yogurt Mktg. & Sales Practices Litig., MDL No. 2588 (W.D. Tex., Austin Div., order entered February 16, 2016). The consumers claimed Whole Foods’ store-brand yogurt contains 11.4 grams of sugar per serving, while the listed sugar content is 2 grams. Details about some of the 11 consolidated lawsuits appear in Issues 533 and 534 of this Update. Whole Foods argued that the consumers’ claims were preempted by the federal Food, Drug, and Cosmetic Act (FDCA) because the scientific testing techniques used by Consumer Reports failed to comply with the testing methodology determined by the U.S. Food and Drug Administration. The court agreed, noting that…
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The U.S. Food and Drug Administration (FDA) has extended from February 16 to February 22, 2016, the comment period regarding requirements for fermented and hydrolyzed foods or those containing fermented or hydrolyzed ingredients that carry the “gluten-free” claim. The proposed rule would apply to foods such as sauerkraut, yogurt, pickles, cheese, green olives, vinegar, and FDA-regulated beers. Intended to address the uncertainty of interpreting test methods in terms of intact gluten, the finalized rule would mandate manufacturers to maintain records demonstrating: (i) “the food meets the requirements of the gluten-free labeling final rule prior to fermentation or hydrolysis”; (ii) “the manufacturer has adequately evaluated its process for any potential gluten cross-contact”; and (iii) “where a potential for gluten cross-contact has been identified, the manufacturer has implemented measures to prevent the introduction of gluten into the food during the manufacturing process.” The agency also intends to evaluate the compliance of distilled…
Chobani has filed a lawsuit seeking a declaratory judgment that its advertisements claiming competitor Dannon’s yogurt contains chlorine are not false or misleading, prompting Dannon to file a counterclaim seeking a preliminary injunction. Chobani v. The Dannon Co., Inc., No. 16-0030 (N.D.N.Y., complaint filed January 8, 2016, counterclaim filed January 11, 2016). Chobani’s complaint details its campaign, launched January 6, 2016, that asserts “Dannon’s Light & Fit Greek Yogurt contains sucralose, an artificial sweetener processed with added chlorine.” The company seeks a declaration that its claims are not false, misleading, disparaging or deceptive under the Lanham Act or New York state law. Dannon’s response argues that the ad campaign “has been misinforming consumers about the health and safety of Dannon’s products while exaggerating the relative health benefits of its own product.” The counterclaim defends sucralose and its use, arguing that it “is not ‘bad’ or harmful.” Further, “Chobani’s campaign falsely…
A California federal court has refused to certify the proposed class in a case alleging Yakult U.S.A., Inc. mislabels its probiotic yogurt drinks as providing nonexistent health benefits. Torrent v. Yakult U.S.A., Inc., No. 15-0124 (C.D. Cal., order entered January 5, 2016). The plaintiff argued that “Yakult fails to actually confer any health benefit and that there is no credible scientific evidence that the probiotics in the beverage do what Yakult claims,” and he sought to enjoin Yakult from continuing to sell the product with its allegedly false labeling. The court found that the plaintiff lacked standing to seek injunctive relief because he did not intend to buy Yakult’s product again. “Owing to his lack of standing to pursue injunctive relief,” the court said, “he has failed to provide a sound rationale for class certification under either [certification standard].” Further, “even if it were possible for [the plaintiff] to obtain…
The Finnish Market Court has reportedly backed MS Iceland Dairies in a legal dispute with Arla Foods over the sale of skyr dairy products in Finland. According to media reports, the court ruled that “skyr” is not a generic term for a yogurt-like cultured dairy product, but rather a specific trademark for a product made in Iceland or Denmark according to recipes held by MS Iceland Dairies. The decision bars Arla Foods from marketing or selling skyr in Finland, with violations fetching fines of €500,000. See Iceland Monitor, October 7, 2015; FoodBev.com, October 13, 2015. Issue 582
A California appeals court has affirmed a lower court’s ruling dismissing a putative class action alleging that Safeway misbranded its Lucerne-brand of Greek yogurt because U.S. Food and Drug Administration (FDA) regulations prohibit the use of “milk protein concentrate” (MPC) in foods labeled as yogurt. Tamas v. Safeway, Inc., No. RIC1206341 (Cal. Ct. App., 4th Dist., Div. 3, order entered February 23, 2015). The plaintiff argued that a 1981 FDA regulation determining yogurt’s “Standard of Identity” (SOI) dictated what ingredients are allowable in products sold as yogurt despite the agency’s stay of the regulation soon after it was issued. FDA promised to schedule a public hearing on the regulation but, as of January 2009, “due to competing priorities and limited resources, FDA has not held a public hearing to resolve these issues and the effective date for these provisions remains stayed. Therefore, these provisions were never in effect. Consequently, cultured milk…
Whole Foods Market Inc. is the target of two new putative nationwide class actions, one filed in a Texas federal court regarding the amount of sugar in the company’s plain Greek yogurt and the other filed in a California state court over alleged false advertising and sales of Blue Diamond almond milk products with a “Non-GMO Project Verified” label. Kubick v. Whole Foods Mkt., Inc., No. 14-1013 (W.D. Tex., filed November 10, 2014); Richard v. Whole Foods Mkt. Cal., Inc., No. BC563304 (Cal. Super. Ct., Los Angeles Cty., filed November 7, 2014). The Texas complaint alleges that Whole Foods 365 Everyday Plain Greek Yogurt represents that it contains 2 grams of sugar per serving, when testing shows that it actually contains more than 11 grams of sugar per serving, or “more than five and a half times the labeled amount.” According to the plaintiff, a California resident, this is particularly significant because…
A California federal court has granted a motion for reconsideration in a case alleging that Wallaby Yogurt Co. includes “evaporated cane juice” (ECJ) on its ingredient lists rather than what plaintiffs allege is the more common name, sugar. Morgan v. Wallaby Yogurt Co., No. 13-296 (N.D. Cal, order entered November 5, 2014). Wallaby had moved for reconsideration of prior orders allowing the case to proceed. The text-only docket indicates that the motion for reconsideration has been granted and the case stayed, with a written order to follow. The stay follows a series of similar actions in other cases after the U.S. Food and Drug Administration (FDA) announced in March 2014 that it would reconsider its 2009 draft guidance discouraging use of the term. In two similar putative class actions, courts have extended stays originally imposed in May 2014 because FDA has not yet issued further guidance. Figy v. Lifeway Foods, No.…
The National Advertising Division (NAD) of the Council of Better Business Bureaus’ Advertising Self-Regulatory Council (ASRC) has recommended that Chobani, Inc. cease airing what it called “Farmland” commercials, “the centerpiece of the company’s campaign to promote its ‘Simply 100’ Greek yogurt.” A rival yogurt company challenged a number of Chobani TV ads that “featured two ‘farm’ settings—a synthetic farm where ‘other 100-calorie yogurts’ were made from the contents of test tubes and plastic cows were filled with powdered chemicals and a real farm with boxes of fresh fruit and live cows.” While the ads did not name other yogurt makers or products, the challenger contended that the message conveyed was that its products do not contain real fruit; they are made with fake milk or milk with chemical additives; its Greek yogurt is “entirely artificial, and unwholesome, unhealthful, and/or harmful to consumers”; and Chobani’s product is the best-tasting 100-calorie Greek…
Echoing a putative class action filed in Massachusetts federal court on August 1, 2014, a plaintiff has filed a lawsuit against Whole Foods Market in Pennsylvania state court accusing the retailer of mislabeling its 365 Everyday Value yogurt’s sugar content as 2 grams despite containing 11.4 grams, according to test results published in the July issue of Consumer Reports. Clemente v. Whole Foods Market Inc., No. 140801271 (Ct. of C.P. of Pa., Philadelphia Cty., filed August 11, 2014). The plaintiffs accuse Whole Foods of knowingly mislabeling its yogurt, citing a statement on the Whole Foods website that allegedly reads, “Our Private Label registered dietician reviews each nutrition label for accuracy and completeness before the label is printed. All attempts are made to review nutrition labels on a regular basis to ensure accuracy.” In the complaint, the plaintiffs argue, “Unless this statement on Defendant’s website is false, then Whole Foods Market was…
