2022 – Page 2 – Consumer Products Law Watch

Court Dismisses False Advertising Suit Over Chocolate-Dipped Ice Cream Bars

Mar 21 2022

Summary: Plaintiff filed a putative class action complaint in New York federal court against Mars Wrigley Confectionery US, LLC, alleging it deceived consumers into believing that its chocolate-coated ice cream bars contained only milk chocolate when they actually contain vegetable oils, which Plaintiff contends are not found in real chocolate. Plaintiff’s primary cause of action arises under New York’s false advertising and deceptive practices statutes, General Business Law §§ 349 and 350. Beers v. Mars Wrigley Confectionery US, LLC, No. 21-CV-2 (CS), 2022 WL 493555, at *2 (S.D.N.Y. Feb. 17, 2022).

New U.S. Sanctions on Russia and Belarus Impose Trade and Investment Restrictions on Luxury Goods and Russia’s Energy Sector

Mar 17 2022

Originally posted on the K&L Gates Hub

By: Jeffrey Orenstein, Steven F. Hill, Stacy J. Ettinger, Erica L. Bakies, Jerome J. Zaucha, Donald W. Smith

As an update to K&L Gates’ previous alerts of 24 February and 25 February, U.S. President Joe Biden issued two executive orders (EOs) last week imposing additional sanctions against Russia. The first order, EO 14066, issued on 8 March 2022, prohibits: (1) U.S. imports of Russian oil and other energy products, and (2) new investments by U.S. persons in Russia’s energy sector. The second order, EO 14068, issued on 11 March 2022, restricts: (1) exports of luxury goods to Russia and Belarus, (2) U.S. imports of Russian alcohol, seafood, and diamonds, and (3) the supply of U.S. dollar-denominated banknotes to Russia and the Russian Government worldwide. This alert describes these new developments in more detail.

Annie’s Hops Away from Proposed Slack-Fill Class Action

Mar 15 2022

By: Ashley Song

Summary: Annie’s, Inc. recently defeated a proposed class action that alleged its tropical-flavored bunny-shaped fruit snacks contained non-functional slack-fill and therefore misled consumers as to the amount of product contained therein.

Key Takeaways: Annie’s, Inc. defeated a proposed class action in the Southern District of New York that alleged that its tropical-flavored bunny-shaped fruit snacks (“Fruit Snacks”) deceived consumers by containing “non-functional slack-fill” (i.e., unnecessary empty space) and misled consumers as to the amounts of snacks contained in each package.

NAD Initiating Review of Brand Claims of Social Justice Initiative Support

Mar 15 2022

By: Meg Tierney

Summary: In February 2022, the National Advertising Division (NAD) of the Better Business Bureau published two decisions related to truth in advertising when making claims about a company’s social justice initiatives. As part of its ongoing monitoring program, the NAD initiated challenges of advertising claims made by Niantic, Inc. (Niantic)[1] and DoorDash, Inc. (DoorDash)[2] regarding allied monetary donations to a variety of social justice initiatives and organizations.

Silent, But Not Deadly

Feb 02 2022

By: Rasheem M. Johnson

Summary: In a case alleging a failure to disclose the presence of toxic heavy metals in baby food, a California federal judge granted in part and denied in part a motion to dismiss. The judge found that plaintiffs have Article III standing and that their cause of action for failure to disclose is not preempted by Federal law.

Key Takeaways: In In re Plum Baby Food Litigation, plaintiffs allege that Plum PBC fails to disclose that its baby food products contain, or have a risk of containing, arsenic, cadmium, mercury and perchlorate. According to Plaintiffs, Plum uses deceptive, unfair and false labeling to obscure the potential presence of toxic metals in its baby food products and charge a price premium for what is labelled and advertised as high quality organic healthy baby food.

Apple Boots “Loot Box” Complaint for Good

Jan 13 2022

By: Ashley Song

Summary: The Northern District of California dismissed, without further leave to amend, a proposed class action against Apple, which claimed virtual loot boxes in the video game application “Brawl Stars” amounted to gambling.

Key Takeaways: In Taylor et al. v. Apple Inc., Rebecca Taylor and her underage son brought a proposed class action seeking to hold Apple liable for distributing game apps through the Apple App Store that they alleged include features that are legally equivalent to slot machines, as defined and prohibited under California law. The complaint advanced claims for relief under California’s Unfair Competition Law (“UCL”) and California’s Consumers Legal Remedies Act (“CLRA”).

Mandatory Bioengineered Food Labeling Rule Went Into Effect on January 1, 2022 – Are You Ready?

Jan 13 2022

By: Amy Wong

Summary: In 2018, the U.S. Department of Agriculture’s (USDA) Agricultural Marketing Service (AMS) implemented the National Bioengineered Food Disclosure Standard (NBFDS). While some food companies have voluntarily complied with the NBFDS since 2018, the new regulations make compliance mandatory as of January 1, 2022.

Key Takeaway: The NBFDS is an extensive marketing standard with which every regulated entity should become familiar. While the USDA does not have authority to issue a recall or impose civil penalties for violations of the NBFDS, the AMS could initiate an investigation and publicly publish the findings of its investigation. It is also possible that States will adopt the same or similar requirements and impose remedies for violations of their standards, such as damages, penalties, injunctive relief, and attorney’s fees.

M&A in Food and Agribusiness Companies: What Your Diligence List is Missing

Jan 13 2022

On 6 November 2021, Kellen Holgate moderated a presentation with speakers Jonathan Cohen, Kari Larson, and Brandy Sargent at the American Agricultural Law Association (AALA) Conference on the topic: “M&A in Food and Agribusiness Companies: What Your Diligence List is Missing.” AALA is a source for information and discussion on laws and public policies affecting agriculture and food, while providing educational programs and member engagement with leadership, service, and networking.

The discussion centered on areas that sometimes are missing from general mergers and acquisitions diligence, such as regulatory food compliance, insurance, and real property and water, as well as unique issues raised in food and agriculture transactions in the financial, legal, insurance, environmental, and corporate formation areas.

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