{"id":3063,"date":"2021-07-26T12:32:25","date_gmt":"2021-07-26T16:32:25","guid":{"rendered":"https:\/\/www2.law.temple.edu\/10q\/?p=3063"},"modified":"2021-07-26T12:32:25","modified_gmt":"2021-07-26T16:32:25","slug":"action-snacked-year-food-labeling-class-actions-on-the-rise","status":"publish","type":"post","link":"https:\/\/law.temple.edu\/10q\/action-snacked-year-food-labeling-class-actions-on-the-rise\/","title":{"rendered":"Action-Snacked Year: Food Labeling Class Actions On The Rise"},"content":{"rendered":"\n

Action-Snacked Year: Food Labeling Class Actions On The Rise<\/strong><\/p>\n\n\n\n

Consumer class action lawsuits targeting foods for alleged false and misleading labeling rose sharply in 2020, with new filings rising by more than 30% nationwide compared to 2019.  New York federal court filings accounted for much of this increase.  Although this trend may appear to threaten the food and beverage industry with the prospect of endless court entanglements and expensive nationwide discovery, in the New York federal courts these cases are increasingly being dismissed early before gaining any traction.  These courts are applying the \u201creasonable consumer\u201d standard with a \u201creal world\u201d perspective, dismissing cases at the threshold motion to dismiss phase more and more regularly notwithstanding plaintiffs\u2019 alleged subjective confusion about the labeling at issue because the hypothetical \u201creasonable consumer\u201d would not have been misled.<\/p>\n\n\n\n

A number of class actions targeting \u201cvanilla-flavored\u201d foods, for example, have been dismissed.  These lawsuits allege the \u201cvanilla\u201d labeling is misleading because the ingredients were not primarily derived from vanilla beans or vanilla bean extract.  Courts have consistently rejected these claims where the product was simply labeled as \u201cvanilla-flavored,\u201d had a vanilla taste, and where the label did not affirmatively claim that the product was \u201cmade with\u201d vanilla beans or bean extract. <\/p>\n\n\n\n

Similar dismissals have extended to foods beyond those labeled \u201cvanilla.\u201d  In Harris v. Mondelez Global LLC<\/em>, the court dismissed a complaint attacking Oreo cookie labeling, which stated that the cookies are \u201cAlways Made With Real Cocoa.\u201d  The court found that the label was factually accurate because the cookies do in fact contain \u201cReal Cocoa,\u201d and, absent language in the label that the cookies were made \u201conly\u201d or \u201cexclusively\u201d with \u201cReal Cocoa,\u201d the label would not mislead a reasonable consumer as to the nature and extent of the real cocoa content.<\/p>\n\n\n\n

On their face, these cases underscore that accuracy matters and that it pays to avoid any hint of overstatement in describing popular food ingredients.  Labels that emphasize the defensible fact of content alone are better suited to defeat a claim of deception at the early threshold motion stage.  Indeed, in Sharpe v. A&W Concentrate Co.<\/em>, the court denied the defendant\u2019s motion to dismiss where the company\u2019s vanilla-flavored soda label included the bolded statement \u201cMADE WITH AGED VANILLA.\u201d  This label goes beyond what the other vanilla labels stated by specifically stating the type of vanilla\u2014\u201cAged Vanilla.\u201d  The court interpreted \u201cAged Vanilla\u201d to mean natural vanilla, and when coupled with plaintiff\u2019s evidence indicating that the vanilla flavor came predominately from an artificial or synthetic ingredient rather than natural sources, the court held this label could mislead the reasonable consumer. <\/p>\n\n\n\n

Other New York federal court decisions suggest that a disclaimer or clarifying language may be necessary in defeating a deception claim.  For example, in Hesse v. Godiva Chocolatier, Inc.<\/em>, the court found that a reasonable consumer could be misled by the \u201cBelgium 1926 label\u201d on Godiva\u2019s chocolates to believe that the chocolates were made in Belgium, when they are made in the United States\u2014a fact Godiva failed to disclose in its labeling.  Had Godiva included a reference to the chocolates being made in the United States on its product packaging, Godiva may have fared better on its motion to dismiss.<\/p>\n\n\n\n

In applying the \u201creasonable consumer\u201d test, New York federal courts also consider the dominant message set forth in the label at issue and how it relates to the product as a whole.  This focus stems from the Second Circuit\u2019s decision in Mantikas v. Kellogg Co<\/em>., involving Cheez-Its\u2019 \u201cWHOLE GRAIN\u201d crackers, labeled prominently as such combined with the statement \u201cMADE WITH WHOLE GRAIN.\u201d  Mantikas<\/em> held that the label could plausibly mislead a reasonable consumer to believe that the crackers are made predominately with whole grain, as opposed to other types of grain, despite the ingredient panel stating the actual mix of whole grain and enriched flour content.  According to district courts dismissing deceptive food labeling claims, Mantikas<\/em> speaks to representations regarding ingredients central to the product and its health benefits.  Consequently, healthful ingredient representations, especially those that relate to the main ingredients of a product, may be held to a higher standard on a motion to dismiss.<\/p>\n\n\n\n

On balance, these cases reinforce that the \u201creasonable consumer\u201d inquiry is context-specific, but also that dismissal at the 12(b)(6) stage is attainable.  Indeed, courts in New York are viewing \u201creasonable consumers\u201d as far more savvy, and far less vulnerable, than plaintiffs\u2019 allegations often suggest.  So when companies choose to litigate, they know that New York federal courts will view claims of deceptive labeling with a refreshingly practical perspective.<\/p>\n\n\n\n

A longer version of this article appeared in New York Law Journal<\/em>. Reprinted with permission from the June 2, 2021, edition \u00a9 2021 ALM Media Properties, LLC. All rights reserved. Further duplication without permission is prohibited, contact 877-257-3382 or reprints@alm.com<\/a>.<\/p>\n\n\n\n

The full article in its original form can be found here<\/a>.<\/p>\n\n\n\n

Shanna L. Miles (LAW \u201916) is an associate at Akin Gump. She represents clients in complex commercial litigation, with an emphasis on consumer class action defense, shareholder and contractual disputes, and bankruptcy litigation.<\/em><\/p>\n\n\n\n

Stephanie Lindemuth is counsel at Akin Gump. Her practice c<\/em>oncentrates on complex commercial litigation, <\/em>with an emphasis on securities, shareholder, and consumer class action defense. <\/em><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

Consumer class action lawsuits targeting foods for alleged false and misleading labeling rose sharply in 2020. Although this trend may appear to threaten the food and beverage industry, courts are applying the \u201creasonable consumer\u201d standard with a \u201creal world\u201d perspective, dismissing cases despite plaintiffs\u2019 alleged subjective confusion about the labeling at issue because the hypothetical \u201creasonable consumer\u201d would not have been misled. <\/p>\n","protected":false},"author":33,"featured_media":3064,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12,52,2002,1976,61,38],"tags":[2243,2244,2245,2246,414,2003,1501,2247,1252,2248,2249,2250,2251,2252,2253,2254,2255],"coauthors":[2241,2242],"class_list":["post-3063","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-alumni-authored","category-compliance","category-consumer-protection","category-health","category-legal-developments","category-regulated-industries","tag-real-world","tag-resonable","tag-12b6","tag-beverage","tag-class-action","tag-consumers","tag-courts","tag-dismissals","tag-food","tag-harris-v-mondelez-global-llc","tag-hesse-v-godiva-chocolatier","tag-inc-2","tag-industry","tag-labeling","tag-lawsuits","tag-mantikas-v-kellogg-co","tag-sharpe-v-aw-concentrate-co","masonry-post","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-33"],"yoast_head":"\nAction-Snacked Year: Food Labeling Class Actions On The Rise - The Temple 10-Q<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/law.temple.edu\/10q\/action-snacked-year-food-labeling-class-actions-on-the-rise\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Action-Snacked Year: Food Labeling Class Actions On The Rise - The Temple 10-Q\" \/>\n<meta property=\"og:description\" content=\"Consumer class action lawsuits targeting foods for alleged false and misleading labeling rose sharply in 2020. 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