ARTICLES

The Food and Beverage Industry: Understanding the New Wave of Class-Action Lawsuits

Over the last five years, the food and beverage industry has experienced a rise in consumer class-action lawsuits. Previously, a food and beverage company’s risk of consumer litigation arose primarily from personal injury claims, such as if a consumer were to become ill from consuming a product. Now, class actions are often filed based on claims that consumers have been misled by the company’s advertising or product labeling.The trend began with class action suits challenging products labeled as ‘natural’. The FDA, USDA and FTC have not regulated the term ‘natural,’ claiming it holds no nutritional meaning, though it is a commonly used term within marketing tactics. Other advertising and labeling claims are increasingly being challenged as well, such as complaints being filed with respect to the use of the following phrases: ‘evaporated cane juice’ as a replacement for of sugar, claiming a product is ‘imported from’ or ‘made in’ certain locations, whether or not a product has been‘handmade’, as well as the labeling of trans fats. Products as diverse as tea, guacamole and almond milk have been subject to litigation. Northern California, once dubbed the Food Court, is no longer alone in the industry’s lawsuit increase climate. Cases are filed in both federal and state courts across the country. Often, the filing of one lawsuit prompts copycat lawsuits in other jurisdictions.

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