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Key Takeaway: As consumer demand for “sustainable” products grows, so does the risk of litigation challenging sustainability claims on advertising and packaging. As one recent case shows, failure to plead actual reliance can be grounds for dismissal of claims that sound in fraud, including claims under California’s False Advertising Law (“FAL”), Unfair Competition Law (“UCL”),…

A new rule from the U.S. Drug Enforcement Agency (DEA) has caused considerable concern within the cannabidiol (CBD) industry. The rule relates to the distinction made in the 2018 Farm Bill that removed certain cannabis products, such as industrial hemp and those containing hemp-derived CBD, with levels of THC not exceeding 0.3% by weight from the federal controlled substances list. THC is the psychoactive substances most associated with a marijuana “high.” DEA’s interim final rule appears straightforward at first glance: cannabis products containing more than 0.3% by weight are subject to DEA enforcement as controlled substances. The rule appears to mean, however, that THC levels can never exceed 0.3% at any point during the product’s manufacturing process, even if the final product offered for sale had THC at appropriate levels.
Continue Reading New DEA Rule May Threaten CBD Manufacturing

In 2011, Perkins Coie’s winning defense in Turek v. General Mills led to the first published federal appellate decision on the scope of the preemption defense under the Nutrition Labeling and Education Act (NLEA). Subsequently, the preemption defense remains strong under the NLEA and other aspects of the federal Food Drug & Cosmetics Act (FDCA), including in cases involving supplements. See Dachauer v. NBTY, Inc. 913 F.3d 844 (9th Cir. 2019). That trend continues. On May 11, 2020, the Second Circuit held that the preemption defense extends to cosmetic products regulated under the FDCA as well.
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Continue Reading Notable Ruling: Lessons for Food Litigation, Second Circuit Upholds Preemption Defense in Cosmetics Case

California courts remain a top forum for food litigation matters. So many matters are heard in the Northern District of California that it has gained a reputation as the “Food Court.” Now, the California Supreme Court has held that two of the state’s most widely used consumer protection statutes must be tried by a judge rather than a jury.

California’s False Advertising Law (“FAL”), codified at Cal. Bus. & Prof. Code § 17500 et seq., and the Unfair Competition Law (“UCL”), codified at Cal. Bus. & Prof. Code § 17200, et seq., represent two of the most common vehicles for plaintiffs to bring suits alleging false product claims or purported misrepresentations on food labels.
Continue Reading Notable Ruling: No Jury for False Advertising and UCL Suits, California Supreme Court Rules

The Ninth Circuit delivered a win for food and beverage companies just in time for the new year in a published opinion in Becerra v. Dr Pepper/Seven Up, Inc., — F.3d —, 2019 WL 7287554 (9th Cir. Dec. 30, 2019).

Plaintiff in Becerra alleged that use of the word “diet” to describe Diet Dr Pepper is misleading because it suggests the product will help consumers lose weight. She relied on several scientific studies to allege that aspartame, the artificial sweetener in many diet sodas, “is likely to cause weight gain,” and “poses no benefit for weight loss.” She also relied on the results of a survey that, according to Plaintiff, showed the majority of soft-drink consumers believe “diet” soft drinks will help them lose or maintain their weight. After several rounds of motion to dismiss briefing, the district court dismissed plaintiff’s complaint with prejudice, and plaintiff appealed.…

Continue Reading Notable Ruling: Reasonable Consumers Not Misled by “Diet” Soft Drinks

In an Order issued earlier this week, the D.C. Superior Court entered an important ruling on the District’s Consumer Protection Procedures Act (DCCPPA). While the ruling ultimately found that the plaintiffs in the suit had standing, it substantially trimmed the theories upon which that standing was grounded.

In Praxis Project et al. v. The Coca-Cola Company, two individuals and a non-profit organization lodged suit against the beverage manufacturer alleging that the manufacturer had made false, deceptive, and misleading representations about its sugar-sweetened beverages in violation of the DCCPPA. Among other things, the Plaintiffs alleged they had standing to lodge the suit based on the DCCPPA’s unique standing provisions.…

Continue Reading Notable Ruling: D.C. Superior Court Issues Ruling on Standing Under DCCPPA

As of August 2019, overall food litigation filings are on pace with those of last year. California and New York remain the two most popular jurisdictions for food litigation matters.  While California filings in 2019 are approximately the same as this time last year, we note that about 40% of total California filings occurred between September and December 2018.  So far this year, we have also noticed an uptick in filings in the District of Columbia.  While filings in the District were a small part of the overall total in 2018, food-related filings in this jurisdiction are currently exceeding those of larger jurisdictions, including Florida, Illinois, and Missouri.

Regarding types of matters, false labeling cases have far outstripped those of other categories.  Compared with August 2018, food-related false advertising claims have increased nearly 60%.  Filings for “all natural” and slack-fill claims have fallen compared to August 2018, with fewer than 20 new cases filed in 2019 from both categories combined.  Even so, we are tracking a number of important trends regarding “all natural” claims, including several cases alleging that the presence of malic acid or other materials render product labeling regarding “naturally flavored” false or misleading.  …
Continue Reading PC Food Litigation Index: August 2019

On March 25, 2019, Judge Gary L. Sharpe of the Northern District of New York dismissed a putative class action against CVS and Lang Pharma alleging that the labeling of defendants’ CVS Omega-3 Krill Oil is deceptive and misleading.  Plaintiff in the lawsuit, James Gaminde, alleged that CVS Omega-3 Krill Oil contained only sixty percent…

As you all know, the Northern District of California jury found earlier this week that Monsanto’s Roundup herbicide product was a “substantial factor” in causing a plaintiff’s non Hodgkin lymphoma. The defendants and industry were all very optimistic that the trial, which focused solely on causation and not knowledge or company conduct, would result in an impartial scientific analysis. Unfortunately, the jury ignored a very substantial body of literature that glyphosate, the active ingredient in Roundup, is safe. It also ignored the conclusions of virtually every regulatory or public health group, including the Environmental Protection Agency (EPA), subcommittees off the World Health Organization (WHO) and the European Food Safety Authority (EFSA). Unfortunately, hundreds of similar cases are pending and a state court jury in Alameda also rendered a verdict against Monsanto.
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Continue Reading Notable Ruling: Glyphosate Verdict—Implications for Food Litigation