Class Action Lawsuits Stemming From Long-Accepted But Misleading Product Label Claims

There has been an increasing number of class action lawsuits targeting food and beverage companies. As pointed out in this piece published in Food Dive, the issues brought before the courts involve misrepresentation of products to the consumers.  That is, product labeling misleads consumers into thinking a product is something that it really isn't.  In the first example, they discuss Canada Dry Ginger Ale, which does not have ginger in it.

The article goes on to state that these cases are really not driven by consumers, but by lawyers who have become very good at finding food products that in some way misrepresent what they are.  Other examples include the claim for use of vanilla when artificial vanilla flavor is used, or cereals that state fruit on the label, but have no real fruit.

It is a good read to think about how one labels a product.

Food Dive
https://www.fooddive.com/news/why-class-action-lawsuit-food-beverage/611348/
DEEP DIVE
Why are so many class action lawsuits filed against the food industry?

In 2020, the number of court cases from consumers claiming that food and drink companies deceived them hit an all-time high, according to statistics compiled by law firm Perkins Coie.

Megan Poinski
Senior Reporter
Published Dec. 15, 2021

Editor's note: This is the first in a two-part series examining the phenomenon of class action lawsuits targeting the food and beverage industry. In part two, Food Dive examines who ultimately wins in the flurry of legal action.

When Leroy Jacobs lived on St. Croix, the locally made ginger beer was a tonic for digestive ailments.

Thousands of miles away in his current home of Illinois, Crucian ginger beer is not readily available. But Canada Dry Ginger Ale is. So some years ago, Jacobs bought it in hopes of getting the same effect.

“It wasn't working,” Jacobs said. “Ginger really is good for our stomach. It helps with the digestion. So that's why I was buying it: for medical reasons.”

As he did some research, Jacobs learned that Canada Dry Ginger Ale contains no actual ginger — even though the label at the time read "Made From Real Ginger." The soft drink is actually made of carbonated water, high fructose corn syrup, citric acid, preservatives and chemical flavoring. So Jacobs joined a class action lawsuit against the brand’s owner, the former Dr Pepper Snapple (now Keurig Dr Pepper).

The lawsuit, first filed in Massachusetts in 2018, charged that the soda company had falsely claimed that Canada Dry included real ginger to give it a more wholesome and natural impression in the mind of consumers. It demanded that the company change its labels to no longer claim ginger as an ingredient, and it also asked for financial damages for consumers who had purchased products based on the label claim.

The manufacturer raised a few arguments in its defense — including that reasonable consumers wouldn't be deceived by the label, as well as issues with where and how the suit was filed. But it ultimately jointly settled the lawsuit and similar cases filed in Missouri's circuit court and California federal court in 2019 for $11.2 million. Households that had purchased the soda since 2013 were eligible to receive up to $40 each in damages. The company also changed its labeling as a result, removing the ginger claim.

As a plaintiff named in the lawsuit, Jacobs received more in damages than others who purchased the soda. But regardless of the money, he said he was content with the result: Canada Dry changed its labeling.

“As long as the companies are held responsible and is willing to change what they're doing, I'm pretty satisfied with that,” Jacobs said. “Stop the deceptive marketing.”

Filing or joining class action lawsuits is a way that many consumers bring their complaints to manufacturers. Scott Hardy, president and CEO of litigation tracking website Top Class Actions, said people need a way to be made right when a company does something that causes an issue.

Rest of article - https://www.fooddive.com/news/why-class-action-lawsuit-food-beverage/611348/