Grocery Stores

News & Analysis as of

Sysco, US Foods Seek Disclosure of FTC Witness Identities

The Federal Trade Commission (FTC) went head-to-head last week with Sysco Corp. and US Foods Inc. over whether to make public the names of the declarants relied on by the FTC in its preliminary injunction to block Sysco and...more

Food Industry Continues to Face Data Privacy and Security Risk

In 2014, grocers and restaurants continued to be plagued by attacks leading to the theft of credit card information. Among others, Supervalu Inc. and Jimmy John’s both experienced intrusions in 2014, extending the string of...more

Court's Interpretation of Merchant Services Agreement Limits Retailer's Liability to Card Brands for Data Breach

On January 15, 2015, the U.S. District Court for the Eastern District of Missouri ruled that fees, assessments and costs imposed by the credit card brands on Schnuck Markets, Inc. (Schnuck), a grocery chain estimated to have...more

California Continues Hazardous Waste Enforcement Campaign Against Retailers With Two New Multi-Million Dollar Settlements

The first quarter of 2015 brought two significant settlements against retailers for alleged violations of California’s hazardous waste laws. The settlements are the latest in a string of similar California enforcement...more

California Voters Left Holding the Bag in the Plastic Bag Ban Battle

The crown for the first state in the nation to ban plastic bags is up for grabs again. Late last year, the California legislature passed, and Gov. Jerry Brown signed into law, SB 270 — making California the first state to ban...more

Illinois Retailers Beware: Class Action Complaint Filed Against Grocer for Collecting Illinois Sales Tax on Manufacturers’ Coupons...

A class action complaint was filed in federal court last week against New Albertson’s, Inc. the operator of the Jewel-Osco grocery chain, alleging failure to deduct manufacturers’ coupons from the tax base on which sales tax...more

Jewel-Osco to Pay $400,000 to EEOC for its Fees and Costs in Contempt Action

Company's Breach of Earlier Consent Decree Led to Award to Federal Agency - CHICAGO - The U.S. Equal Employment Opportunity Commission (EEOC) today filed notice in U.S. District Court for the Northern District of...more

And the Beat Goes On: NY State Assembly to Vote on GMO Labeling Law

Coming on the heels of the reintroduction of the Genetically Engineered Food Right-to-Know Act, on March 3, 2015, the New York State Assembly Committee on Consumer Affairs and Protection voted 9 to 6, with one abstention, to...more

Food Court Grants Summary Judgment In Class Action Targeting “No Sugar Added” Label

As readers of this blog are well aware, manufacturers and retailers have faced a tidal wave of consumer class actions alleging false advertising in recent years. ...more

Update: Transaction Processors Appeal Order Denying Third-Party Fees after Cyber Attack

In early February, this blog discussed a case involving a grocery store chain that was a victim of a cyber-attack and its transaction processors. See Schnuck Mrkts. v. First Data Merchant Servs Corp., No. 4:13-cv-2226-JAR,...more

Food Industry Outlook for 2015

For 2015, the food and beverage industry will experience governmental attention on a number of fronts. Given the Department of Justice’s recent success in prosecuting food manufacturing executives on criminal charges, the...more

Revised “Fred Meyer Guides” Leave Treatment of Key Robinson-Patman Act Provisions Unchanged

While hardly ever enforced in modern times by government enforcement agencies, and rarely the subject of antitrust treble damage actions, Sections 2(d) and (e) of the Robinson Patman Act (15 U.S.C. §§ 13(d) and (e)) have had...more

Food Litigation Newsletter - February 2015

In This Issue: - RECENT SIGNIFICANT DEVELOPMENTS AND RULINGS ..Another Greek Yogurt Case Against Whole Foods is Transferred ..Safeway’s Frozen Waffles Case Dismissed ..Individual Claims...more

Court Allows Price Discrimination Lawsuit Over Bulk Sales to Survive

On February 2, 2015, a federal judge denied a motion to dismiss a claim that Clorox’s proposed policy of providing only large bulk-size packages of products to warehouse clubs, like Sam’s Club and Costco, and not to competing...more

Losses Associated with Cyberattack at Grocery Store do not Override Liability Cap

Grocery stores have been hit with a number of suits by their customers in recent years after a cyberattack of the store leads to a theft of customer financial information. Another type of suit arises frequently when such...more

Food and Beverage News and Trends

This regular publication by DLA Piper lawyers focuses on helping clients navigate the ever-changing business, legal and regulatory landscape. - Prepacked caramel apples tied to four deaths from listeria. Listeria from...more

State of the GMO Union

Just how hot is GMO-labeling legislation? On Jan. 6, 2015, a Republican state senator introduced just such a bill - in Indiana, the nation’s breadbasket. Still, federal legislation on both sides of the issue has stalled, the...more

Advertising Law - January 2015 #2

Safeway Must Pay Customers for Higher Online Prices - A California federal court judge has ruled in a breach of contract suit that Safeway is liable to customers who paid more for items online than in the store. ...more

District Court Rules Online Agreement Does Not Bind Customers to Unknown Future Contract Terms

On December 10, the U.S. District Court for the Northern District of California granted plaintiff’s motion for partial summary judgment in a class action suit filed against a large grocery chain. Plaintiff claims that the...more

FTC Seeks Public Comments on Proposed Merger Study

The Federal Trade Commission (FTC) announced today that it is seeking public comments on a proposed study of the effectiveness of the FTC’s orders in merger cases where it ordered a divestiture or other remedy....more

The Merchant Financial Cyber Partnership Issues Cybersecurity Recommendations

The Merchant Financial Cyber Partnership (“the Partnership”) recently released eight recommendations aimed at enhancing the data security of the payments system across the merchant and financial industries. The Partnership...more

Bright Petroleum, Inc. Shareholders/Officers to Pay $15,000 to Settle EEOC Retaliation Suit

Food Market Terminated Manager Who Filed Discrimination Charge, Federal Agency Charged - INDIANAPOLIS - Two shareholders/officers of the dissolved corporation Bright Petroleum Inc. d/b/a The Bright Market, will pay...more

Court Holds Supervalu/Jewel-Osco in Contempt for Violations of EEOC Consent Decree in Disability Case

Federal Agency Obtains Relief for Three Jewel Employees Denied Accommodation; Extension of Consent Decree by One Year; Jewel to Pay EEOC Attorneys' Fees - CHICAGO - Federal District Judge Ronald A. Guzman has entered a...more

Whistleblower Exposes Cultural and Accounting Failures at UK Supermarket Giant

Irregular accounting practices and a corresponding £263 million — approximately $423 million — in overstated profits were recently revealed at one of Britain's largest supermarket chains, sending company shares plummeting and...more

DOJ Requires Compliance with Voluntary Guidance for Website Accessibility - Website Operators: Be Aware of Efforts to Expand Legal...

The Department of Justice (DOJ) has announced a compliance review and subsequent settlement agreement with Ahold U.S.A. Inc. and Peapod, LLC – the owner and operator of peapod.com, an online grocery shopping website. The...more

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