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Have ‘all-natural’ lawsuits peaked? And what defense strategies are working?

2 commentsBy Elaine WATSON , 21-Feb-2014
Last updated on 24-Feb-2014 at 17:35 GMT

Have ‘all-natural’ lawsuits peaked? What defense strategies work?

While the number of lawsuits filed against food and beverage manufacturers over ‘all-natural’ claims appeared to peak in 2012 and drop off again in 2013, it’s too early for the industry to start cracking open the champagne just yet, say legal experts.

Speaking at a webinar on ‘all-natural’ civil litigation hosted by continuing legal education provider Perrin Conferences on Wednesday Feb 19, Erik Connolly, a partner in Winston & Strawn’s Chicago office, said there was a sudden surge in such lawsuits in 2011 (49 cases) and 2012 (85 cases), but a drop off in 2013 (58 cases).

However, this does not necessarily mean plaintiffs’ attorneys are losing interest, he said, noting that owing to the length of time it has taken for many of these cases to move through the courts, some legal firms may just be waiting to see how some play out before filing fresh complaints.

He added: “If you have not already been sued, chances are that you are on the radar.”

Just because the filings were down in 2013 doesn’t mean the trend has peaked

Erik Connolly: “If you have not already been sued, chances are that you are on the radar.”

Anne Regan, a partner at Zimmerman Reed in Minneapolis, said uncertainty over whether the FDA might weigh in on this issue may have had a “dampening effect” in late 2013 (three high-profile cases were put on ice last year as judges asked the FDA to come to an administrative determination on whether GMOs belong in ‘natural’ foods, while the GMA also said it would petition the agency to clarify this issue).

However, in January 2014, the FDA declined to come to such a determination (click here ) - at least in the context of private litigation - said Regan, so it will be interesting to see if things pick up again in 2014.

Jeff White, a partner at Robinson & Cole in Hartford, Connecticut, added: “Just because the filings were down in 2013 doesn’t mean the trend has peaked.”

California: The food court?

As to where the complaints are being filed, California is still the “epicenter for all-natural litigation” for several reasons, said Connolly.

The lion's share of 'all-natural' lawsuits are filed in California

First, it has robust consumer protection laws, but there are other considerations plaintiffs’ lawyers might consider, including that larger classes could be certified;  jury pools could prove more health-conscious (and therefore more favorable to the plaintiff); but also because it’s easier to predict what might happen as so many cases have been filed there.

Defense strategies in ‘all-natural’ cases

As to what strategies are working for companies targeted in these lawsuits, said Connolly, an analysis of tactics employed in motions to dismiss such cases in 2012 and 2013 shows that express and implied pre-emption, primary jurisdiction, standing, plausibility, and particularity, have all proved successful.

However, what often happens is that motions to dismiss are granted in part and denied in part, so it’s very rare that food companies can “declare a total victory” at this stage in a case, he said.

In cases where a class is certified, meanwhile, defendants typically choose to settle rather than see a case go to summary judgment or to trial, said Regan.

None of these ‘all-natural’ cases has gone to trial as far as I am aware.” 

Click here  to access the audio and slides on-demand for: 

‘All-Natural’ food labeling litigation: Strategies that have worked and failed for plaintiffs and defendants

Has the percentage of new launches that feature natural claims dropped? Click here to find out.

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2 comments (Comments are now closed)

It is "all natural" for folks to point fingers...

There is a slight fault with the logic in the earlier comment in that the argument assumes the product labeling or listing of ingredients on the panel is done correctly, or that the correct formulation is made publicly available for consumers to read and easily decide for themselves - all too often neither are! We see this day in and day out.

Bottom line, misleading consumers by making a claim that a product is "all natural" or perhaps using any other unsubstantiated claims to promote a product or brand is real issue here. Moreover, a company selling a product using misleading claims tends to make more way money than any one attorney/firm would, not to mention the general effect diluting the marketshare for competing products that are truly "all natural." At least there is a legal system to help restore some balance and ultimately some relief to customers. It is extremely rare to hear about any company issuing an apology and refund on their own merit for such matters. It is an easy fix to make for any given label to ensure compliance, and conversely this can be a very tough/costly lesson if one choses not to make the fix.

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Posted by Brandon Griffin
25 February 2014 | 02h15

Another 'legalized' way for lawyers to make money

The so called aggrieved customer needs to realize when they take their little 5.00$ coupon to get a product based on a' cash action' lawsuit the lawyer is the one raking in thousands even millions!!! There is a FDA panel for dummies and it states HOW MUCH sugar is in the product as certain ingredients can be anything that may contain sugar or sucrose. Anyone that can read-even a student - can see what's in that product as to sugar and salt for example. It's just another a way or method for low life attorneys to take in more money from successful companies funds. If they are such selfless crusaders why don't they donate their ill gotten gains to charity?

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Posted by Dr.H.Davis
22 February 2014 | 00h52

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