Food & Beverage Litigation Update

Food & Beverage LITIGATION UPDATE Issue 197 • January 12, 2007 Table of Contents Legislation, Regulations and Standards [1] FDA Solicits Public Comments on Cloned Animal Assessment and Guidance . .1 [2] CSPI Files Petition to Limit Salt in Meat and Poultry Products . .1 2006 Regulatory Review [3] Food Marketing and Childhood Obesity . .2 [4] Food Safety . .3 [5] State/Local Initiatives . .3 [6] GM Issues . .4 Litigation [7] Kraft’s Capri Sun® Products Challenged for “All Natural” Label . .4 2006 Litigation Review [8] Litigation Threats . .5 [9] Youth Marketing . .5 [10] Deceptive Advertising/Trade Practices . .6 [11] Proposition 65 Product Warnings . .6 [12] Bovine Spongiform Encephalopathy . .7 [13] Genetically Modified Organisms . .7 [14] Foie Gras . .7 [15] E. Coli . .7 [16] Salt . .8 [17] Miscellany . .8 www.shb.com Food & Beverage LITIGATION UPDATE press. Other critics have derided cloned animals as Legislation, Regulations allegedly reinforcing genetic abnormalities when selected for optimum milk or meat production. and Standards Meanwhile, farmers are reportedly deciding whether the benefits of cloned breeding stock outweigh Food and Drug Administration (FDA) public distrust. See Center for Science in the Public Interest Press Release, December 28, 2006; Reuters, [1] FDA Solicits Public Comments on Cloned December 29, 2006; Food Navigator USA.com, Animal Assessment and Guidance January 3, 2007. “The draft risk assessment finds that meat and milk from clones of adult cattle, pigs and goats, and U.S. Department of Agriculture (USDA) their offspring, are as safe to eat as food from conventionally bred animals,” according to an [2] CSPI Files Petition to Limit Salt in Meat and FDA press release announcing draft documents Poultry Products on the safety of animal clones. In addition to the The Center for Science in the Public Interest risk assessment, FDA has issued a proposed risk (CSPI) has filed a petition under the Administrative management plan to address “potential remaining Procedure Act asking the USDA’s Food Safety and uncertainties” as well as draft guidance for industry. Inspection Service (FSIS) “to establish ceilings for The guidance does not make special recommenda- sodium in various categories of products containing tions for “human food use” of clones, but expects meat or poultry.” that most clones will be used as “elite breeding According to the petition, meat and poultry stock.” Comments on the draft documents should products such as ham, sausage, hot dogs, sliced be submitted to FDA by April 3, 2007. See FDA Press turkey breast, and chicken nuggets, which vary widely Release, December 28, 2006; Federal Register, in their sodium content, are responsible for some January 3, 2007. 11 percent of Americans’ total sodium intake. CSPI While scientists and agriculturists consider the contends that such variations “clearly demonstrate FDA assessment, consumer groups have already that – without affecting the safety of the food – it is criticized it as flawed. “FDA is essentially giving a feasible for the firms making high-sodium products couple of cloning companies a Christmas present to lower sodium levels and still have tasty products at the expense of consumers and the dairy industry,” that would be competitive in the marketplace.” a Center for Food Safety spokesperson told the FBLU FBLU 197 January 12, 2007 Page 2 CSPI refers to its November 2005 petition, which restrict alcohol advertising to media that obtains asks the Food and Drug Administration (FDA) to only 15 percent of its audience from the 12-to-20 revoke its “generally recognized as safe” (GRAS) age bracket. Later the FTC proposed a “compulsory classification for salt, and suggests that USDA not process order” to gather data from alcohol adver- wait for the FDA to act. The petition calls for FSIS to tisers on their compliance with voluntary industry “immediately announce that it will propose regula- guidelines. A second FTC notice, distributed to food tions that would set ceilings for sodium in various and beverage companies, solicited information on categories of products containing meat or poultry. kid-oriented marketing for a media report requested Those ceilings might be set equal to the average or by Congress. In a December letter to consumer median level of sodium in different brands of the groups, however, the commission explained that it same food, the lowest level found in any brand with was not going to regulate “word-of-mouth” marketing. significant sales, or some other standard.” According The Federal Communications Commission to CSPI, the average per capita sodium consumption (FCC) announced its own task force on advertising in the United States is “well above” the FDA’s and children’s health in 2006. Including industry current recommended level. representative and public advocates, the task force reportedly aims to “encourage best practices for 2006 Regulatory Review industry and continue to educate American parents.” The FCC also issued a final rule on children’s [3] Food Marketing and Childhood Obesity programming guidelines, effective January 2, 2007, Throughout 2006, lawmakers and federal agencies amending host selling restrictions for Web sites. addressed food marketing and its purported effect Host selling restrictions prohibit TV characters from on childhood obesity. Efforts by the 109th Congress selling products during or adjacent to the shows in to increase government oversight included a House which they appear. The guidelines further revised bill (H.R. 5737) that proposed authorizing the the definition of “commercial matter” and vacated Federal Trade Commission (FTC) to curb food “the percentage cap on the number of permissible and beverage marketing geared toward children core program preemptions.” younger than age 18. In September, the U.S. Senate In international developments, the World Health approved the Children and Media Research Organization (WHO) in November unveiled an anti- Advancement Act (CAMRA), directing the Centers obesity charter that claims to protect “vulnerable for Disease Control and Prevention (CDC) to study groups such as children and adolescents, whose the impact of electronic media on child development credulity should not be exploited by commercial and to report its findings to Congress. activities.” Signed by European health ministers, the In a joint report with the Department of Health charter also “calls for specific regulatory measures” and Human Services, the FTC also recommended beyond industry self-regulation. An independent that food companies revise their marketing practices media regulator in the United Kingdom followed to help consumers make nutritious choices. In May, suit with a ban on advertising foods high in fat, salt several state attorneys generals pressed the FTC to or sugar to children younger than 16. FBLU FBLU 197 January 12, 2007 Page 3 [4] Food Safety Several foodborne illness outbreaks were linked to raw produce in 2006, the most significant In a year characterized by reports of foodborne involving spinach processed by Natural Selection illnesses and escalating rates of obesity, this Report Foods LLC that reportedly sickened 200 people. In covered numerous regulatory measures enacted by an effort to improve industry practices and recall the Food and Drug Administration (FDA) and the procedures, FDA extended its Lettuce Safety Department of Agriculture (USDA). Among the Initiative to all raw produce. This E. coli outbreak guidance issued in 2006, FDA (i) defined “whole also revived the Safe Food Act of 2005, which called grains” as containing the same proportions of for a centralized food safety system and a coding primary components as intact grain; (ii) proposed system to facilitate disease investigation. Although a rule to disclose cochineal extract and carmine, the bill did not become law, its precepts were echoed insect-derived additives, on food labels; (iii) revised in major newspapers and food magazines at the end food allergen labeling guidelines; (iv) announced of the year. “Aside from undue corporate influence voluntary food retail standards aimed at creating and inadequate funding, America’s food-safety national uniformity among regulators; and (v) set system is hampered by overlapping bureaucracies,” lead limits of 0.1 ppm in candy consumed frequently Eric Schlosser opined in a New York Times piece by children. FDA also held public hearings on whether supporting a renewal of the Act in the 110th Congress. “functional foods” making health claims beyond basic nutrition should be more closely regulated. [5] State/Local Initiatives USDA began the year with an audit faulting the As part of the nation’s continuing focus on obesity, Grain Inspection, Packers and Stockyards several state and local governments responded to Administration for allegedly shortchanging laws public pressure for new health initiatives. In May, meant to prohibit unfair, deceptive and fraudulent Connecticut prohibited the sale of soft drinks, practices. The agency also recommended changes to sports drinks and juices that contain less than 100 a Food Safety and Inspection Service (FSIS) review percent fruit juice in middle, elementary and high system after FSIS failed to ensure that state meat and schools. That same month, three major soft drink poultry inspection programs met federal standards. In manufacturers pledged to stop selling non-diet December, the agriculture department announced beverages in schools by 2009, a plan confirmed by that the controversial National Animal Identification

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