According to a press report, the U.K. High Court has ordered Danone to remove any reference to “Greek yogurt” on the packaging for its newly launched product Danio®. The matter is currently before the court in litigation involving Greece-based yogurt maker Fage, which sued U.S.-based Chobani Inc. in November 2012 after that company launched its “Greek yogurt” product line in the United Kingdom. While Danone is not apparently required to remove offending products already on store shelves under the injunction, it began complying with the January 30, 2013, court order on products made after that date. In a statement Danone said, “This ruling is in place until the High Court has determined, as part of a separate case with another manufacturer, whether the use of ‘Greek yogurt’ is only possible for yogurt produced in Greece or if it refers to a particular type of yogurt made using a specific process.…
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General Mills has agreed to establish an $8.5 million fund to settle claims that it falsely advertised its Yo-Plus yogurt as a product that helped naturally regulate “digestive health.” Johnson v. General Mills, Inc., No. 10-61 (C.D. Cal., stipulation of settlement filed February 4, 2013). If the court approves the agreement, purchasers throughout the United States will be able to seek $4 for each unit of Yo-Plus purchased, and any unclaimed funds will be distributed to the National Consumer Law Center and Mayo Clinic. The company apparently no longer sells the products. The costs of class notice and administration, attorney’s fees and incentive awards for plaintiffs in several related class lawsuits will be deducted from the settlement fund. Recovery will be capped at 13 units of Yo-Plus yogurt per claimant, unless proof of purchase for more units purchased during the class period can be shown. A hearing for preliminary approval…
A federal court in Minnesota has dismissed without prejudice state law-based consumer-fraud claims filed against a company that makes Greek yogurt not by straining it, a process essential to the traditional production of this thickened dairy product, but by adding milk protein concentrate (MPC). Taradejna v. General Mills, Inc., No. 12-993 (D. Minn., decided December 10, 2012). So ruling, the court directed the parties to initiate proper proceedings before the Food and Drug Administration (FDA). The court recites FDA yogurt-related standard-of-identity initiatives since 1981, culminating in a pending 2009 proposal that would permit the use of “any safe and suitable milk-derived ingredient as an optional dairy ingredient in the manufacture of yogurt.” Finding that application of the primary jurisdiction doctrine was appropriate in the matter, the court states, “The underlying issue here is whether MPC is a proper, permitted ingredient in yogurt. The resolution of this question falls squarely within the…
A New York resident has filed a putative class action against The Dannon Co., alleging that because the company adds “filler materials, such as water, corn starch, and Milk Protein Concentrate” to products that it sells as yogurt, the products contain “banned additives” and, as a matter of federal law, are not yogurt, are misbranded and “cannot legally be sold in the United States.” Conroy v. The Dannon Co., Inc., No. 12-6901 (S.D.N.Y., filed September 11, 2012). A number of allegations in the complaint, including a history of yogurt-making, are carbon copies of a complaint filed in a California federal court in August 2012 against Cabot Creamery Cooperative, alleging that its Greek-style yogurt cannot be sold in the United States for similar reasons. Filed by the same law firm, that case is discussed elsewhere in this Update. Seeking to certify a nationwide class and New York subclass of product purchasers, the…
A California resident has filed a putative nationwide class action with astatewide subclass against a yogurt maker that sells “Greek-Style Yogurt” which allegedly contains ingredients that the Food and Drug Administration (FDA) has banned from use in yogurt. Smith v. Cabot Creamery Coop., Inc., No. 12-4591 (N.D. Cal., filed August 31, 2012). According to the named plaintiff, the company sells its product as “authentic Greek yogurt” thus allowing it to “charge a substantial price premium. . . . But the price premium for Cabot Greek is even larger, because Cabot Greek has no value whatsoever. Because the product is adulterated, it cannot legally be sold at any price. It is worthless.” The plaintiff contends that by using whey protein concentrate and milk protein concentrate as filler materials to thicken the product, the company does not incur the time and expense required to produce real Greek yogurt. Among other matters, the plaintiff…
According to a news source, putative class actions have been filed against Strauss Group Ltd. and Tnuva Food Industries Ltd., alleging that their yogurt products, marketed as “yogurt with granola nuts” and “yogurt with granola fruit, “ respectively, mislead consumers because they contain so little nuts or fruit. Seeking NIS 72 million (US$17.8 million) from Strauss, which has a 42 percent market share, and NIS 142.5 million (US$35.3 million) from Tnuva, the petitioners reportedly claim that the products should be labeled as “flavored” with the ingredients. See Middle East North Africa Financial Network, August 12, 2012.
A California resident has filed a putative class action against a company that sells Greek-style yogurt products labeled with the terms “evaporated cane juice,” “All Natural Ingredients” or “Only Natural Ingredients,” claiming that they are false and misleading. Kane v. Chobani, Inc., No. 12-2425 (N.D. Cal., filed May 14, 2012). According to plaintiff Katie Kane, the company includes on the ingredients list for some of its yogurt products the term “evaporated cane juice,” which the Food and Drug Administration (FDA) has warned other companies is false and misleading, and uses phrases containing the word “natural” despite making the yogurt with artificial ingredients, flavorings and colorings, such as “fruit or vegetable juice concentrate.” She contends that these product representations “mislead consumers into paying a premium price for inferior or undesirable ingredients” and “render products misbranded under federal and California law.” Seeking to certify a statewide class of consumer, the plaintiff alleges…
Seeking to certify a class of all consumers who purchased Lucerne® brand Greek yogurt from any of its parent Safeway grocery stores, a California resident has filed a complaint in state court alleging that the product is mislabeled because it is not thickened through straining but rather by the addition of milk protein concentrate (MPC). Tamas v. Safeway, Inc., No. RIC 1206341 (Cal. Super. Ct., Riverside Cty., filed April 27, 2012). According to the complaint, MPC “is essentially a blend of dry dairy ingredients,” often imported and used to increase protein ratios in dairy products; it is allegedly not among “generally recognized as safe” food additives listed by the Food and Drug Administration (FDA). “Thus,” the plaintiff claims, “using MPC in any human food constitutes adulteration.” The plaintiff also alleges that the product does not meet FDA’s standard of identity for yogurt products. The plaintiff contends that she would not…
A federal court in Florida has redefined a plaintiffs’ class in deceptive advertising litigation against the company that claims its Yo-Plus® yogurt provides digestive health benefits. Fitzpatrick v. General Mills, Inc., No. 09-60412 (S.D. Fla., order entered December 2, 2011). While the Eleventh Circuit Court of Appeals upheld the class certification decision, it remanded the case for the lower court to redefine the class to omit any reference to plaintiffs’ reliance on company claims, which reliance need not be proved under the Florida Deceptive and Unfair Trade Practices Act. Additional information about the Eleventh Circuit ruling appears in Issue 388 of this Update. The class will now be defined as “all persons who purchased Yo-Plus in the State of Florida until the date notice is first provided to the class.”
Fage Dairy Processing Industry, S.A. has filed a lawsuit seeking to overturn the Trademark Trial and Appeal Board’s refusal to register the yogurt maker’s “Fage Total” trademark and a declaration that its use of the mark does not infringe any claimed right of General Mills, which makes Total® breakfast cereals. Fage Dairy Processing Indus., S.A. v. General Mills, Inc., No. 11-1174 (N.D.N.Y., filed September 30, 2011). According to the complaint, the board’s ruling is replete with factual errors. The complaint also asserts that Total® cereal and Fage Total yogurt co-existed in U.S. markets for 13 years “without a single instance of actual confusion arising from the parties’ use of their respective marks.” Fage alleges that the defendants, “suddenly and without warning” brought a federal trademark infringement lawsuit against it in mid-September, “seeking draconian damages.” That suit was apparently filed two days after the board refused to register Fage’s marks.
