Phthalates -- Is It Really What’s for Dinner?

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Over the past several years, it has been hard to miss the trend of independent labs and the plaintiffs’ bar scrutinizing—and suing upon—such findings as fat content in food products (e.g., Muscle Milk and ground beef), or the veracity of representations that consumer goods are “natural” or “preservative-free” (e.g., “100% grated Parmesan cheese”). By one statistic compiled by the U.S. Chamber Institute for Legal Reform, from 2008 to 2016, food marketing cases increased from 20 to 425 active cases in federal courts, representing more than a 2000% increase. More recently, the ante has been upped with reports that ubiquitous packaged products like mac-and-cheese contain levels of phthalates. In simplest terms, phthalates are a type of chemicals often used to make plastics more flexible and resilient. A report published July 12, 2017 in the New York Times online edition blared that “[p]otentially harmful chemicals that were banned from children’s teething rings and rubber duck toys a decade ago may still be present in high concentrations in your child’s favorite meal: macaroni and cheese mixes made with powdered cheese” based upon a “new study of 30 cheese products . . . detect[ing] phthalates in all but one of the samples tested, with the highest concentrations found in the highly processed cheese powder in boxed mac and cheese mixes.” Signaling the alarm, the Times article noted that phthalates “can disrupt male hormones like testosterone and have been linked to genital birth defects in infant boys and learning and behavior problems in older children,” explaining that “[t]he chemicals migrate into food from packaging and equipment used in manufacturing and may pose special risks to pregnant women and young children.” The study, conducted by Flemish Institute for Technological Research (VITO), a reportedly independent lab in Belgium but presented under covering report by the Coalition for Safer Food Processing & Packaging, challenged Kraft by “calling on [the company] to lead the industry to address the challenge posed by phthalates because Kraft is, by the far, the largest brand, and therefore has the power to push for industry-wide change.”

The societal changes surrounding packaged food products are well accepted: consumers—typically informed parents—are more conscious than past generations about what they eat and feed their children. Millennials may well become even more scrutinizing and they represent a massive group of consumers. What remains uncertain is whether the recent press showered on phthalates will prompt the plaintiffs’ bar to file new personal injury actions. Although it is not clear yet whether the plaintiff community will invest in suits regarding phthalates, it is a topic worth watching carefully in the second half of 2017 and beyond. Undoubtedly, causation would be difficult to establish with the science still undeveloped concerning the alleged danger posed by such small amounts of phthalate coatings. Some however may well seize on these studies while also funding further studies in an effort to develop the science and causation theories to launch mass torts or class actions. Such efforts may already be underway.

Given the trends in recent years of ballooning food marketing litigation, however, the most likely lawsuits facing producers such as Kraft are labeling claims. The fact that litigation is now rampant based on what most mainstream members of the public would consider “minor” labeling violations (for example, the seemingly healthy and natural KIND bars being represented as “healthy” or “natural”) reveals the low threshold for actionable claims. Litigation of this sort has been especially targeted at makers of goods labeled with so-called “negative claims” such as “organic” or “non-GMO.” Take for example Gallagher v. Chipotle Mexican Grill, Inc., 2016 WL 454083 (N.D. Cal. 2016), in which plaintiff sued under California’s consumer legal remedies act, false advertising law, and unfair competition statute “claim[ing] that she decided to purchase the food after having seen or heard advertisements, and in-store signage, that Chipotle used ‘only non-GMO ingredients.’” 

These types of lawsuits may well impact manufacturers, retailers, packaging vendors in the future, as regulations and industry practices are now being used to measure such descriptors. Indeed, guidance published in August 2016 by the FDA’s Food Safety and Inspection Service (FSIS) entitled Statements That Bioengineered or Genetically Modified (GM) Ingredients or Animal Feed Were Not Used in the Production of Meat, Poultry, or Egg Products explains how companies can make labeling claims concerning the fact that bioengineered or genetically modified (GM) ingredients or animal feed were not used in the production of meat, poultry, or egg products. This guidance about such “negative claims” in foodstuffs is just one indicator of how the regulatory sphere is permeating, but not necessarily simplifying, these food labeling issues. These new guidelines may well be used to show that certain labeling is somehow per se non-compliant and therefore “objectively” actionable. What all of this means for mac-and-cheese and other food producers is beware the trend.

Not only could this herald consumer fraud and labeling class actions, but we can also expect litigation or arbitration between and among suppliers, producers, distributors and retailers in the commercial chain. Although causation may be a high hurdle, if it is ever overcome, the indemnities that run among such entities may be heavily strained and hotly litigated.

With protective parents concerned and regulatory authorities creating a fertile climate for potential litigation, recent developments concerning phthalates are worth monitoring carefully. Food manufacturers and others in the supply chain should consider strategies to protect themselves from possible future actions, such as identifying products that may potentially contain phthalates as well as weighing potential impacts on branding, business relationships and brand reputation.

1 Ms. Glasband and Messrs. Westenberger and Gilmartin are attorneys in the Product Liability practice group at Locke Lord LLP, with offices in Morristown, New Jersey and New York City, among others nationwide and overseas.
2 U.S. Chamber Institute for Legal Reform, The Food Court (Feb. 2017) at 2, available here. (Last accessed Aug. 24, 2017).
3 According to CDC, phthalates “are often called plasticizers. Some phthalates are used as solvents (dissolving agents) for other materials.” CDC, Factsheet: Phthalates, available here. (Last accessed Aug. 24, 2017).
4 R.C. Rabin, The Chemicals in Your Mac and Cheese, N.Y. Times (July 21, 2017), available here. (Last accessed August, 24, 2017).
5 Coalition for Safer Food Processing & Packaging, About the “Final Report: Analysis of Selected Phthalates in Food Samples”, available here. (Last accessed Aug. 24, 2017).
6 PwC, Healthy eating is increasingly on consumer’s agendas, with millennials leading the way, available here. (Last accessed Aug. 24, 2017).
7 See R. Fry, Millennials overtake Baby Boomers as America’s largest generation, Pew Research Center, available here. (Last accessed Aug. 23, 2017).
8 See, e.g., In re KIND LLC “Healthy & All Natural” Litig., 209 F. Supp. 3d 689, 690 (S.D.N.Y. 2016) (“Plaintiffs bring this putative class action alleging that KIND LLC and KIND Management, Inc. (together, ‘KIND’) deceptively marketed certain products as ‘healthy,’ ‘all natural,’ and/or ‘non GMO.’”).
See Guidance, Statements That Bioengineered or Genetically Modified (GM) Ingredients or Animal Feed Were Not Used in the Production of Meat, Poultry, or Egg Products, 81 Fed. Reg. 57879, August 24, 2016, available here. (Last accessed Aug. 24, 2017). According to this guidance, “[e]ffective immediately, FSIS will begin approving negative claims for meat, poultry and egg products that do not contain bioengineered ingredients or that are derived from livestock that do not consume bioengineered feed and that contain the terms ‘genetically modified organism’ or ‘GMO.’”  The guidance explains that “[i]n evaluating such claims, FSIS will utilize the definition of ‘bioengineering’ in Public Law 114-216. In that law, the term ‘bioengineering’ refers to a food that contains genetic material that has been modified through in vitro recombinant deoxyribonucleic acid (DNA) techniques and for which the modification could not otherwise be obtained through conventional breeding or found in nature.”

 

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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