News & Analysis as of

False Advertising

Competitor’s Claim of False Advertising Through Use of Certification Mark Dismissed

by Dorsey & Whitney LLP on

In Board-Tech Elec. Co. v. Eaton Electric Holdings LLC, the U.S. District Court for the Southern District of New York recently dismissed a novel claim that a competitor’s authorized use of a third party’s certification mark...more

Chipped Away: Frito-Lay Removes “All Natural” Label from Products Containing GMOs

by Reed Smith on

The plaintiffs in a five year old consumer class action against Frito-Lay North America and its parent company PepsiCo, Inc. got their wish earlier this month when Frito-Lay agreed to remove the “All Natural” label from its...more

Ruling in the Asahi Beer Class Action

by McDermott Will & Emery on

Last month the US District Court for the Central District of California issued an order in the Shalikar v. Asahi Beer U.S.A., Inc. false advertising class action case. Like many similar cases, Shalikar alleges that the...more

Tito’s Taste Test Claims Leave Bad Taste for NAD

Tito’s Handmade Vodka promised to stop using claims that consumers preferred the taste of its product in a challenge brought by competitor Absolut Spirits Co. before the National Advertising Division (NAD)....more

Court Says “Lights Out” on UL Certification Lanham Act Claim

Last week, a federal judge in Manhattan examined the intersection of false advertising and trademark infringement law in connection with the alleged misuse of a certification mark, and found the plaintiff to be entitled to...more

Food & Beverage Litigation Update | November 2017

NOSB Votes to Continue Allowing Hydroponics - The National Organic Standards Board (NOSB) has reportedly voted to continue allowing food grown in water-based nutrient solutions to be labeled “organic,” rejecting a...more

Quaker Oats Succeeds in Maple Syrup Suit

by Reed Smith on

The Central District of California granted Quaker Oats Company’s Motion to Dismiss a Consolidated Class Action Complaint on October 10. Plaintiffs alleged Quaker Oats Company was liable for labeling its “Maple & Brown...more

U.S. District Court Sanctions Weight-Loss Supplement Marketers for Violating Past Court Order

by Reed Smith on

A judge in the Northern District of Georgia has found a number of defendants, comprising a larger company named Hi-Tech Pharmaceuticals, Inc. (“Hi-Tech”), in contempt for repeated violations of court orders prohibiting the...more

Risk Mitigation Strategies for Food and Beverage Companies: Five Prophylactic Measures

by Dorsey & Whitney LLP on

Each year, food, beverage and agribusiness companies pay millions of dollars in settlements, penalties and judgments to consumers allegedly harmed through the sale, advertisement and manufacture of their products. The legal...more

Retailer Liability Under The Florida Unfair And Deceptive Trade Practices Act

by Rumberger Kirk & Caldwell on

Retailer Liability Under the Florida Unfair and Deceptive Trade Practices Act - Florida retailers have long been part of products liability litigation based on their position in the chain of distribution. But retailers now...more

“Local” Means Something, but What?

by Kelley Drye & Warren LLP on

The “local” food movement is growing, as many consumers attempt to find fresher options, support local businesses, and reduce the environmental impact of shipping foods over longer distances. One problem, though, is that no...more

9th Circuit Resolves Split on False Advertising Injunctions

• The 9th Circuit held that consumers may have Article III standing to seek an injunction under California false advertising law even though the consumer subsequently learned that the advertising in question was false or...more

FTC settles Section 5 claims against company promoting schools to military servicemembers

by Ballard Spahr LLP on

The FTC has entered a proposed consent order with Victory Media, Inc. (VMI) to settle the FTC’s charges that VMI violated Section 5 of the FTC Act by engaging in deceptive acts or practices in connection with its promotion of...more

Jury Finds ‘Local’ Ad Claim Misses the Mark

Can a claim using the word “local” constitute false advertising? - That question was recently asked in Utah federal court as part of a recent lawsuit involving bread products. Leland Sycamore invented the formula for...more

Quaker Dodges False Ad Suit Over Mislabeled Oatmeal

A California federal court judge sided with Quaker Oats Co., ruling that it did not engage in false advertising by dubbing several varieties of its instant oatmeal “Maple & Brown Sugar,” even though the products did not...more

Dietary Supplement & Cosmetics Legal Bulletin | October 2017

by Shook, Hardy & Bacon L.L.P. on

The use of beauty products is “an understudied source of environmental chemical exposures” with a disparate effect on women of color, George Washington University and Occidental College researchers argue. Ami R. Zota, et al.,...more

Misled Consumers Can Obtain Injunctions Against Businesses

by Selman Breitman LLP on

A consumer misled by fraudulent representations may still obtain an injunction against a business so long as the consumer claims that he or she wishes to purchase the product or service in the future but cannot confidently...more

Ninth Circuit Says Plaintiff Might Get Fooled Again

by Carlton Fields on

Last week the Ninth Circuit reopened a key avenue in consumer false advertising class actions – injunctive relief. A growing number of trial courts had dismissed those claims, reasoning that plaintiffs who know of the alleged...more

Eleventh Circuit Has No Appetite for Non-GMO Claims

The U.S. Court of Appeals for the Eleventh Circuit affirmed summary judgment in favor of Chipotle Mexican Grill in a false advertising action, holding that the plaintiff failed to demonstrate an actual injury based on the...more

Food & Beverage Litigation Update | October 2017 #3

by Shook, Hardy & Bacon L.L.P. on

FDA Warns Snyder’s-Lance About Iron Content Labels - The U.S. Food and Drug Administration (FDA) has sent a warning letter to Snyder’s-Lance, Inc. about the iron content of its Lance Toast Chee Crackers. The letter...more

California AG Thirsty for Action Against Gatorade

The Gatorade Company violated state law by urging players of its advergame to ditch water for the sports drink, California’s attorney general alleged in an action against the company....more

CFPB Denied Restitutionary Relief in False Advertising Lawsuit Against Mortgage Services Company

by Dorsey & Whitney LLP on

In a Consumer Financial Protection Bureau (“CFPB”) action against a mortgage services company, its subsidiary, and its founder, a California district judged denied an award of $73.9 million in restitutionary relief, and...more

Cracking Open a Cold One: Plaintiffs’ False Advertising Suit Against Brewer Survives Dismissal

by Reed Smith on

Earlier this year, two plaintiffs launched a putative class action against Portland-based Craft Brew Alliance, the fifth largest brewing company in the U.S. and parent company of Kona Brewing Co. Craft Brew acquired Kona in...more

Food For Thought: Liability-Only Class Certification Denied For Claims That “No Sugar Added” Juice Labels Misled Consumers Into...

by Carlton Fields on

Plaintiff’s putative class action alleged that defendant Mott’s violated FDA regulations and California’s Sherman Law and Unfair Competition Law when it labeled and sold its 100 percent apple juice with the label “No Sugar...more

Dismissal of Individual Claims Cap Insurer’s Winning Streak in Action Challenging FIA Product Features

by Carlton Fields on

In May, the Southern District of California handed ING a win in a case involving allegations that the company targeted seniors with annuities that hid an embedded derivative structure that made them worth less than promised....more

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