[co-author: Stephanie Kozol]*
New York Attorney General (AG) Letitia James is suing JBS USA Food Company and JBS USA Food Company Holdings under New York’s consumer protection laws for allegedly attempting to boost consumer sales by making sustainability claims in its advertising that it had “no viable plan” for achieving.
The companies are subsidiaries of the Brazilian meat processing conglomerate JBS S.A., the world’s largest producer of beef products.
In her statement announcing the complaint, James faulted the company for claiming that it “will achieve net zero greenhouse gas emissions by 2040, despite documented plans to increase production, and therefore increase its carbon footprint.” James said that the company’s claims about reducing greenhouse gas emissions were “misleading the public about its environmental impact” to “capitalize on consumers’ increasing desire to make environmentally friendly choices.”
The AG’s complaint, which was filed in the New York County Supreme Court on February 28, alleges that “[a]cross its marketing materials, the JBS Group has made sweeping representations to consumers about its commitment to reducing its greenhouse gas emissions, claiming that it will be ‘Net Zero by 2040.'” However, according to the complaint, the JBS Group “has had no viable plan to meet its commitment to be ‘Net Zero by 2040.'”
According to the complaint, “[i]n a recent proceeding defended by the JBS Group, the National Advertising Division (NAD) of the Better Business Bureau determined that the JBS Group’s “Net Zero by 2040″ marketing claim is unsubstantiated and misleading to consumers and recommended that the JBS Group stop making that claim.” The complaint alleges that the National Advertising Review Board, NAD’s appellate body, upheld that decision, and that “[d]espite these industry admonishments, the JBS Group has continued to make the same or similar claims to consumers … .”
The five-count lawsuit brings claims under Sections 349 and 350 of the New York General Business Law. The former prohibits deceptive acts or practices in the conduct of any business, trade, or commerce in New York. The latter prohibits false advertising in the conduct of any business, trade, or commerce or in the furnishing of any service in New York. The suit also alleges fraud in violation of Section 63(12) of the New York Executive Law.
James’ lawsuit asks the court to enjoin JBS USA from making the challenged marketing claims; to require the company to disgorge profits, funds, and assets traceable to the challenged conduct; impose a $5,000 per violation penalty under Section 350 of the New York General Business Law; impose a $1,000 per violation penalty under Section 349 of the New York General Business Law; and to order JBS USA “to perform and provide to the State six-month and 12-month independent audits of all consumer-facing publications to ensure compliance with” New York consumer protection laws.
Why It Matters
New York’s lawsuit against JBS USA represents an extension of state AGs’ increasingly prevalent use of their broad authority under state consumer protection laws to bring enforcement actions based on corporate representations related to climate change. While previous suits have focused on the fossil fuel industry’s alleged downplaying of the role that greenhouse gas emissions have played in climate change, James’ action against the JBS Group extends the theory to include commitments regarding reductions in greenhouse gas emissions in company advertising and marketing efforts.
Additional article on State Attorneys General offices in the “Net-Zero” space:
*Senior Government Relations Manager
