VEGGIE Doesn’t Mean “Made of Vegetables,” California Judge Rules

In a somewhat surprising ruling, a judge in the Northern District of California last week dismissed with prejudice a false advertising case about certain MorningStar Farms products such as VEGGIE BURGERS, VEGGIE DOGS, AND VEGGIE CHIK’N.  Kennard v. Kellogg Sales Co., No. 21-cv-07211 (N.D. Cal. Sept. 14, 2022), Dkt. No. 46.

The plaintiff alleged that naming the products “VEGGIE” leads reasonable consumers to believe that the products are made primarily of vegetables.  Id. at 2.  Because the products are actually composed primarily of non-vegetable ingredients like wheat gluten, oil, and corn syrup solids, the plaintiff alleged that the packaging is false or misleading in violation of, among other things, California’s False Advertising Law (“FAL”), Unfair Competition Law (“UCL”), and Consumer Legal Remedies Act (“CLRA”).  Id. at 1-2.  The FAL, UCL, and CLRA are very common vehicles utilized by California plaintiffs to bring lawsuits over statements they believe are false or misleading (a defendant can be liable even if its statements are technically true if they are misleading).

The defendant argued that the VEGGIE labels were not misleading because reasonable consumers understand the term VEGGIE to refer to vegetarian or meat substitute foods, not a reference to being made primarily of vegetables.  Id. at 2, 5.

The Court previously dismissed the complaint once, agreeing with the defendant that reasonable consumers would not understand VEGGIE to mean made primarily from vegetables.  He gave the plaintiff another chance to re-plead her case, however, to add facts showing why a significant portion of the public acting reasonably could be misled into thinking that the products were made from vegetables as opposed to grains, legumes, and oil.  Id. at 2-3.

In the Amended Complaint, the plaintiff bolstered her allegations about consumer understanding with a survey that the she said demonstrated that consumers are misled by VEGGIE labeling, thinking that the products are made primarily from vegetables rather than non-vegetable plant-based ingredients.  Id. at 3.  The Court was not swayed, finding that the claims in the Amended Complaint were “implausible and do not support a reasonable inference that some significant portion of consumers would be misled into thinking the VEGGIE products are made primarily from vegetables as opposed to being vegetarian meat substitutes made from grains, oils, legumes, or other ingredients,” and dismissed the complaint again, this time with prejudice.  Id. at 6, 14-15.

What makes this decision surprising is that the Court ruled definitively for the defendant at the motion to dismiss stage.  At that stage, which usually happens early in a case before the actual facts are known, the Court is required to assume the truth of all well-pleaded factual allegations.  How reasonable consumers interpret a label usually is a factual issue, not a legal one.  Here, however, the plaintiff commissioned a survey prior to amending her complaint and even incorporated the survey findings into her complaint (which the Court had to accept as true when ruling on the motion to dismiss).  One might have thought this would make the case particularly difficult to dispose of on a motion to dismiss.

So how did it happen?  First, the Court said the label “VEGGIE” was not misleading because consumers could look for context clues.  Even if the term VEGGIE was ambiguous, said the Court, consumers could look at the ingredient list on the packaging and therefore would not be misled.  Id. at 6-7, 10.  Second, the Court found that the plaintiff’s survey did not ask the right question.  Id. at 10.  The survey asked what plant-based ingredients consumers believed were primarily in the product, when it should have asked whether the term VEGGIE, taking into account the product packaging, “conveyed that the Veggie Products were meat-alternative or … were made with vegetables as opposed to other ingredients.”  Id. at 10.  The Court bolstered that opinion by citing to other cases where courts had determined that surveys cannot save “otherwise facially implausible consumer deception claims.”  Id. at 9.

What can we take from this decision?  First, both the defendant and the Court noted that it is rare for courts to decide as a matter of law that a reasonable consumer would not be deceived by a defendant’s packaging or marketing.  Id. at 2, 5.  Second, while it may be rare, it is not unprecedented.  This decision made sure to cite as support for its position other cases holding that advertising was not misleading as a matter of law, many of which are very recent.  Cases like these might be indicators that California federal courts are pushing back a bit against the wave of non-meritorious false/misleading advertising cases brought by plaintiffs under the UCL/CLRA/FAL.  Look for these cases to be cited by future defendants when moving to dismiss false advertising-type cases.

Court Rejects Tofurky’s Request for Preliminary Injunction to Halt Enforcement of Missouri’s Meat Advertising Law

By Michelle C. Pardo

We previously blogged about the case of Turtle Island Foods, et al. v. Mark Richardson, 2:18-cv-04173, pending in federal court in the Western District of Missouri. Turtle Island Foods, doing business as The Tofurky Company (“Tofurky”) which produces plant-based products, together with The Good Food Institute (an organization founded in part by Bruce Friedrich, former director of PETA’s vegan campaigns), sued Missouri prosecutors over its 2018 amended meat advertising law. The law requires that in order for a product to be labeled as “meat” it must come from “any edible portion of livestock, poultry, or captive cervid carcass or part thereof.” Mo. Rev. Stat. § 265.300(7). Under the amended law, plant based products, such as Tofurky’s veggie burgers or sausage, would be deemed to be misleading unless the labels contain an appropriate qualifier such as “plant-based,” “veggie,” “lab grown,” or “lab created.” Lab-grown or cultured meat products (also referred to as “clean meat”) is a new technology in which meat is grown from in vitro animal cell culture instead of from slaughtered animals. These products have not yet debuted in the marketplace. Continue reading “Court Rejects Tofurky’s Request for Preliminary Injunction to Halt Enforcement of Missouri’s Meat Advertising Law”

The Beef Goes On: Tofurky Challenges Arkansas Meat Labeling Law

by Michelle C. Pardo

Tofurky goes to court – again. On July 22nd, Turtle Island Foods (doing business as The Tofurky Company) filed a federal lawsuit in the Eastern District of Arkansas against the Arkansas Bureau of Standards to challenge the constitutionality of an amended Arkansas law that prohibits “purveyors of plant- or cell-based meats” from using the words “meat” and related terms like “beef,” “pork,” “roast,” and “sausage.” See Ark. Code Ann. § 2-1-305. Violations of the law, which goes into effect on July 24, 2019, may be punished by civil penalty up to $1,000. Counsel for Tofurky includes animal activist group Animal Legal Defense Fund, the ACLU Foundation, and The Good Food Institute, a Washington, DC based advocacy group (whose founder previously ran vegan campaigns for PETA). All of these organizations previously teamed up with Tofurky to challenge Missouri’s amended meat advertising law. Continue reading “The Beef Goes On: Tofurky Challenges Arkansas Meat Labeling Law”

No Meating of the Minds: Settlement Reaches An Impasse In Missouri Meat Advertising Lawsuit

By Michelle C. Pardo

We previously blogged about the case of Turtle Island Foods d/b/a Tofurky Company, et al. v. Richardson, 2:18-cv-04173-NKL, pending in the Western District of Missouri and the parties efforts to settle the lawsuit since late 2018.  The lawsuit, brought by the plant-based food producer and the advocacy group, The Good Food Institute (Executive Director, Bruce Friedrich, was the former leader of PETA’s vegan campaigns) and represented by the animal rights group Animal Legal Defense Fund (ALDF)and the ACLU of Missouri Foundation, filed a status report this month informing the court that “the parties do not believe that additional time will allow for resolution of the impasse.  The parties are grateful for the Court’s patience as they attempted to reach a final settlement agreement.”  The Joint Status Report also asks the court to resume the litigation that was originally filed in August of 2018, the day after the Missouri statute went into effect.

The case, which has received widespread media and industry attention, sought to challenge Missouri’s first-in-the-nation meat advertising law that prohibited companies from “misrepresenting a product as meat that is not derived from livestock or poultry.”  Mo. Rev. Stat. § 265.494(7).  The plaintiffs allege that the statute is unconstitutional and argue that it was not enacted to address consumer confusion, but rather to protect and favor the agriculture industry.  Plaintiffs claim that the law is overly broad and that no plant or cell-based producer can determine whether their food labeling would leave them exposed to criminal prosecution.  This is despite the fact that the Director’s Office of the Missouri Department of Agriculture (MDA) issued guidance to plant-based and cell-based producers on how to modify their labels to avoid referrals for criminal prosecution.  MDA indicated that it would not refer products with labels that contain, for example, prominent statements that the product is “plant based”, “veggie”, “lab grown” or a comparable qualifier.

Tofurky products include terms such as “burgers”, “chorizo style sausage”, “slow roasted chick’n” “hot dogs” and “ham roast”, some of which are coupled with qualifiers such as “veggie”, “plant-based” and “vegetarian”.

ALDF, an animal rights organization representing plaintiffs, has stated that the law “stifles innovation” from cell-based producers.  Cell-based or lab-grown meat has been touted as an industry game-changer in overhauling the way in which animal protein products are developed and provided to consumers, though none are commercially available yet.  Ironically, Washington, DC-based plaintiff, The Good Food Institute, has stated that the Missouri law is unnecessary because “misbranding is already prohibited by federal law.”  But animal and environmental activist groups have frequently litigated consumer fraud lawsuits against animal protein producers, despite the fact that the producers’ labels and advertising have complied with federal law, rejecting arguments that federal preemption invalidates their lawsuits.

The Missouri Cattlemen’s Association Executive Vice President Mike Deering has disagreed with the animal activist group and plaintiffs’ position:

The legislation does not stifle technology, but it ensures the integrity of our meat supply and reduces consumer confusion. . . The use of traditional nomenclature on alternative products is confusing to consumers and weakens the value of products derived from actual livestock production.”

Two months after the complaint was filed, the plaintiffs filed a preliminary injunction, alleging that they face irreparable harm absent preliminary injunctive relief. Tofurky’s harm, plaintiffs allege, is the conundrum the amended statute presents: risk criminal prosecution or change the way Tofurky does business by creating specialized marketing and packaging for the state of Missouri or refraining from selling products in Missouri entirely, both of which create additional cost and potential market disadvantages.

The parties had commenced settlement negotiations in late 2018 and had been providing the court with monthly status updates about their progress.  The court has not yet issued a scheduling or other order resuming deadlines in the case.

 

 

USDA and FDA Announce Joint Regulatory Oversight for Cell-Cultured Food Products

by Michelle C. Pardo

On November 16, 2018, the U.S. Department of Agriculture (USDA) and the U.S. Food and Drug Administration (FDA) announced that the two Agencies will jointly oversee the production of cell-cultured food products derived from livestock and poultry (referred to by some as “clean meat”). This announcement follows October meetings between the two Agencies and stakeholders about issues related to regulatory oversight for this new technology, including issues related to potential hazards in production.

In an official statement:

“the Agencies are today announcing agreement on a joint regulatory framework wherein FDA oversees cell collection, cell banks and cell growth and differentiation. A transition from FDA to USDA oversight will occur during the cell harvest stage. USDA will then oversee the production and labeling of food products derived from the cells of livestock and poultry.”

The Agencies noted that this joint oversight takes advantage of the FDA’s and the USDA’s respective experience with new food technologies, living bio systems, and regulation of livestock and poultry products for human consumption. The Agencies and the Administration have taken the position that no new legislation on this topic is necessary. While many in the meat industry had presumed that the two Agencies would share regulatory oversight, the respective roles were not defined prior to this announcement. Cell-cultured meat companies seemed to have favored the FDA as the primary regulatory agency, while those that raise livestock and poultry for slaughter tended to favor the USDA taking the lead.

Some traditional meat companies have criticized cell-cultured meat technology as “fake meat”.  We previously blogged about a lawsuit challenging state laws that limit what type of product can be labeled as “meat”.  (“What’s Your Beef: Legal Challenge to Missouri’s Meat Advertising  Law)  https://blogs.duanemorris.com/animallawdevelopments/tag/clean-meat/.   Whatever the products marketed and sold to consumers are eventually called — be it “cell-cultured food products”, “clean meat”, “lab grown meat”, “synthetic meat” or “in vitro meat” — this technology is bound to spark further debate among stakeholders in the food industries, the scientific community, consumers, and animal rights activists.

The public comment period on this issue is extended until December 26, 2018.

“What’s Your Beef”? Legal Challenge to Missouri’s New Meat Advertising Law

by Michelle C. Pardo

Animal rights and environmental activists have long led the charge into federal and state courts with consumer fraud actions challenging representations made about animal products, ostensibly arguing that consumers are misled by animal welfare claims on labels, but often with the ultimate goal of removing from a label something that the activists fear is influencing consumers’ purchase of an animal product.

Missouri’s new, first-in-the-nation law (amending its prior meat advertising law) prohibits companies from “misrepresenting a product as meat that is not derived from harvested livestock or poultry.” Mo. Rev. Stat. § 265.494(7). This amendment may put animal and environmental activist groups on their heels as it changes the way that products not derived from animals can be labeled.

Continue reading ““What’s Your Beef”? Legal Challenge to Missouri’s New Meat Advertising Law”

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