Media Headlines and Food Labels Each Might Be Misleading (Film at 11)
A recent headline in the Huffington Post breathlessly importuned:
"Restaurant Food Has Up to 200% More Calories Than Advertised."
If you only read the headline, you might think this was some important information that might change your eating habits. If you read the article, you would discover a balanced set of conclusions from a fairly limited study.
First, the limitations. The study tested a total of 29 dishes at 10 chain restaurants, plus some frozen supermarket meals from nationally-distributed brands. That's hardly a study of "restaurant food" in general.
Now the facts from the actual article:
- The only item that came up at 200% over the published calorie count was Denny's "grits and butter." Denny's responded to the study by pointing out the serving size for its calorie count was a four-ounce serving and the one used in the study was a 9.5 ounce serving. So you can pretty much discount the headline already.
- The average variation in calorie counts was nowhere near 200%; it was 18%. Or, according to my calculation, 1111.11% overstated.
- The Food and Drug Administration permits a variation of 20%, so even with the Denny's grits and butter (which was, to repeat, apparently not an appropriate comparison), the food in the aggregate met the government standard.
- Reasonable minds--in the person of two professors of nutrition--can differ about whether the calorie numbers on restaurant menus should be relied on.
- Some of the variation can easily be explained by such simple things as the fact that a different amount of mayonnaise may come off the spatula on different sandwiches.
One thing I know is that the reporter, who in this case appears to have done a careful and balanced job, is not the headline writer, whose job is to grab attention. And grab attention the headline did. If you read the article, you learned a lot. If you only read the headline, you learned nothing and might have been misled.
For the record, when my name is on the byline, I wrote the headline, too.
Where to Eat in Dodgy Places: Advice from a Real World Traveller
Joel Putnam is a world traveller in his early 20's. He recently reached Africa, his seventh continent in his travels around the world. As is typical of his generation (he is, in the interests of full disclosure, a friend of my son), he is blogging about it. His blog is very well-written, and the captions on his photographs are always witty and often downright hilarious.
Joel has apparently been reflecting more broadly on his experiences, and he penned an entry entitled "Travel Tip: Street Food Primer" that includes some excellent advice on how to select a place to eat anywhere in the world.
Here are some excerpts:
- Lesson number one: In the developing world, street food is often safer than restaurant food. Yes, you read that correctly. Street food. The food that has made me the most sick while traveling has almost all come from restaurants. The reason why, is that with street food, you see it get cooked right in front of you, and you see who is cooking it. In restaurants, you see neither.
This is an important insight, although as readers of this blog know, you can get sick at the most sanitary of street stalls, or in the best restaurant on earth.
- Lesson number two: usually, if the tap water isn't safe, neither is the ice. This is seems obvious when written, but it's one a lot of of people forget in practice. There are a few countries, mostly in Asia, where ice is actually factory made from safe water. But please take the extra step and check that that's the kind of ice floating in your drink.
- Lesson number three: what's safe for the locals isn't necessarily safe for you, yet. . . . We all have little local beneficial bacteria running around our digestive tracts that helps us handle the local food. This differs from place to place. So take it easy for the first few days in a new place to develop your own. Legend has it local yogurt helps with this (though beware, yogurt that hasn't been refrigerated properly or that has expired is a fast way to making you sick). After you've been eating tame food (like vegetarian dishes) in a place for a bit, then try moving on to the more interesting stuff.
- Lesson number four (this one is important): if the place is crowded, the food is probably good, and it's almost definitely being cooked fresh. This is an excellent way to pick street food vendors and restaurants. We'll call it the sheep method. The reason is that deserted restaurants and vendors are much more likely to leave things like meat lying around in temperatures that let nasty things start growing in it. Then when you order it, it'll get quickly reheated and served. Popular vendors, on the other hand, are having to constantly cook fresh batches to meet demand. And if it's in that much demand from the locals, it's probably because the food is especially good.
From the introduction to his blog entry, I might add a lesson number five: avoid hubris. He recounts the tale where he bragged to some fellow travellers that he had eaten so many different things in China that he should have no trouble in Mongolia. The natural result of that was that he had 12 hours of indigestion from his first Mongolian street food. But fortune follows the brave, since one of those fellow travellers from Wales was a doctor.
Joel's common sense advice can be used anywhere. We all have internal sensors that tell us when it's good to eat or drink something--our eyes, our noses, our taste buds, our ears. This is good supplementary information for how to deploy them in unfamiliar places.
I commend Joel's blog to you and not just for the travel insights. If you care to do so, vote for his blog as Travel Blog of the Year in the Blogger's Choice Awards. I also thank him for the delicious photograph accompanying this entry. I think we may safely assume he didn't get sick from that meal.
Hold the Salt: The Gathering Push for Sodium Reduction in Food Products
By Guest Blogger Tyler Anderson
The issue of sodium content in food has been a hot topic in recent months, as our own Ken Odza has blogged about in reporting on the class action lawsuits filed against Denny’s in New Jersey and Illinois. Now the New York City Department of Health and Mental Hygiene is addressing the issue. On January 11, the Department unveiled the National Salt Reduction Initiative, targeted toward reducing the salt levels in products offered by restaurants and food companies.
This initiative reflects a voluntary goal led by New York City to reduce the salt levels in packaged and restaurant foods by 25 percent over five years. According to the initiative, accomplishing this benchmark would reduce the nation’s salt intake by 20 percent and prevent up to 800,000 premature deaths nationwide and 23,000 in New York City alone. According to Dr. Sonia Angell, director of the Cardiovascular Disease Prevention and Control Program at the Department, the average American adult consumes 3,400 to 3,500 milligrams of sodium per day, while most individuals need about only 1,500 milligrams to satisfy their health needs. The initiative has gathered a wide range of support from parties including the American Heart Association, the American Medical Association, Oregon Department of Human Services, and the Washington State Department of Health.
While the National Salt Reduction Initiative reflects a shot across the bow on the subject of sodium reduction in food products, some industry players have been moving in this direction on their own. However, as a recent Wall Street Journal article points out, many of these food manufacturers have been taking a measured approach with regard to the issue of sodium reduction and the manner in which they communicate such changes to consumers. For example, by next summer ConAgra Foods, Inc.’s Chef Boyardee canned pasta will have decreased its sodium content by roughly 35 percent over the last five years. Campbell Soup Co.’s original flavor of V8 100% Vegetable Juice has dropped its sodium content by 32 percent over eight years. Neither of these brands has made any mention of this decrease in sodium content on its packaging.
The reasoning behind this initially surprising silence is, according to food industry executives quoted in the Wall Street Journal article, that dramatic reductions in sodium content often result in different tastes and consumer dissatisfaction that manifests itself as reduced sales. According to Douglas Balentine, Unilever NV’s North American director of nutrition and health, a gradual reduction in sodium allows consumers to adjust to a less drastic change in taste as sodium content is reduced over time. This allows manufacturers to avoid problems such as those faced by the Kellogg Co. in the early 1980s when the company launched low sodium versions of its popular Corn Flakes and Rice Krispies breakfast cereals. According to Celeste Clark, senior vice president of global nutrition for Kellogg, consumers were not satisfied with the flavor of the products and the new brands were scrapped after four years. This balance between health benchmarks and industry performance will continue to shape the regulation of sodium content as this issue continues to grow in prominence.
Third Circuit Rules that Food Service Management Companies and Distributors are Not Competitors for Robinson-Patman Act Analysis
If a manufacturer is selling the exact same goods to someone else for 59% less than it will sell to you, it would seem natural that you'd pick up the phone and call your lawyer and sue someone, wouldn't it? In particular, this would seem to be a classic violation of the Robinson-Patman Act,15 U.S.C. Section 13. Feesers, Inc., a food distributor, found itself in just that situation in buying liquid eggs from Michael Foods, Inc. It sued Michael Foods and Sodexo, Inc., the food service management company that was getting that huge discount, in federal court. Both sides brought high-priced legal talent to bear and the case marched up and down the federal courts until, on January 7, the U.S,. Court of Appeals for the Third Circuit ruled that Feesers was wrong. Because Sodexo was not, in its opinion, a competitor of Feesers, the Robinson-Patman Act was not violated.
The case is complex, as is much Robinson-Patman litigation, but essentially it hinges on when the actual sales to Feesers or Sodexo might occur. Feesers is a classic food distributor. In connection with liquid eggs, that means that it sells to what are called "self-ops", or businesses that run their own food services, such as a college dorm or a retirement home. Sodexo, on the other hand, is a food service management company, which provides essentially turnkey services to businesses that are not interested in running their own food services. The critical fact, to the Third Circuit, is this: while Feesers and Sodexo may compete for the same customers, the competition between them is over when the customer decides to be a self-op or to use a food service management company. And, critically, that competition takes place before as single liquid egg is sold to the winner by Michael.
The Third Circuit relied on a recent U.S. Supreme Court case, Volvo Trucks North America, Inc. v. Reeder-Simco GMC, Inc. and its own decision in Toledo Mack Sales & Service, Inc. v. Mack Trucks, Inc., both of which had held that the question of whether two entities were in competition was to be construed both narrowly and formally.
In sum, because any competition between Feesers and Sodexo occurred at the time an institution was deciding whether to self-operate or hire a food service management company, and any resulting sale of Michaels’s products would have to occur after that competition, Feesers cannot show that it was a competing purchaser of Sodexo. The evidence produced by Feesers only further confirms the futility of its RPA claims, because such evidence—evidence showing consistent favoring of another purchaser over the plaintiff over time by a manufacturer in a bid market—was rejected in Toledo Mack. Such evidence cannot support an inference of competitive injury in a bid market. Finally, the Supreme Court’s instructions to narrowly construe the RPA also compel us to reject Feesers’s RPA claims.
Future plaintiffs faced with what seems to be a price differential for what they consider at first glance to be their competitiors will be well-served to engage in a deeper analysis prior to suit. Where you stand in the food chain will need to be pretty much exactly where your price-advantaged competitor stands or the benefit of Robinson-Patman may be denied you.
Dairy Industry Moving Towards A Sustainable Future: MOU with USDA Signed
By Guest Blogger Joel Dahlgren
The dairy industry continues to move forward with its objectives of creating a sustainable future and of responding to concerns for green house gas emissions. On December 15, 2009, Secretary of Agriculture Tom Vilsack and Thomas Gallagher, CEO of Innovation Center for U.S. Dairy (Innovation Center) and Dairy Management Inc. (DMI) signed a Memorandum of Understanding (MOU) providing for coordination between the USDA and the Innovation Center.
The dairy industry launched a sustainability initiative in 2008. The initiative’s first priority is to reduce greenhouse gas emissions twenty five percent (25%) by the year 2020. Leaders from approximately eighty percent (80%) of the dairy chain – including farmers, cooperatives, processors and manufacturers – have endorsed this commitment.
The Memorandum of Understanding establishes a relationship reflecting the commitment of the USDA and the Innovation Center to create a sustainable future for the dairy industry. Two goals are recited in the Memorandum of Understanding. First, the parties will work toward reducing green gas emissions as described above. Second, the parties will accelerate and streamline the process for adopting anaerobic digesters by U.S. dairy producers through USDA programs.
Click here for the Innovation Center’s website.
Consumer Fraud Claims: Examples of Good and Bad Motion Practices
The Good: Tropicana recently brought a motion to dismiss the Zupnik putative consumer fraud class claims pending against it. Zupnik alleges that Tropicana misled consumers in the promotion of its “Pure 100% Juice Pomegranate Blueberry Flavored Blend of 5 Juices from Concentrate with other Natural Flavors” because its front label did not include pictures of fruits other than pomegranates and blueberries.
Tropicana’s motion, brought under both FRCP 9(b) and 12(b)(6), appears as a good example of how putative consumer class claims can be challenged at the outset of the case. Though we don’t yet know whether Tropicana will be successful, its pleading is a sharp attack on the plaintiff’s complaint and takes advantage of the heightened pleading requirements announced recently by the Supreme Court.
Tropicana moved on the basis that the complaint lacks particularity required under Rule 9(b) (the rule requires pleading of the “particularity of the fraud”). It also challenged whether the plaintiff had any injury in fact or alleged any reliance on particular advertising. Finally, Tropicana argued that Zupnik’s claims were expressly preempted by federal law.
Tropicana cites to Twombly to urge the court to disregard “plaintiffs legal conclusions . . . even when made, as here, in the guise of factual allegations.”
Tropicana also attacks Zupnik’s complaint on the basis that “she got what she paid for.” Tropicana points out that its product sold for far less than juice with a higher level of pomegranate or blueberry juices. Because she got what she paid for (presumably regardless of whether she understood it at the time of purchase), she lacks standing to bring a claim for consumer fraud.
The Bad: Coincidently, in another case involving a putative consumer fraud class claim over depictions of fruits on a label, Judge Gorton of the United States District Court for the District of Massachusetts in Wiley v. Gerber Products Company granted Gerber’s motion to transfer to the Southern District of California for consolidation with the Williams case pending in California. (The Williams case was previously discussed in this blog.)
The lesson from Wiley v Gerber: if your strategy is to avoid transfer of venue, think about this when pleading. For example, do not include allegations in the complaint about a nationwide class and the application of different states’ consumer protection laws.
Wiley argued against transfer, contending that the “Court’s familiarity with Massachusetts law, under which several claims are brought weights against transfer.” The problem is that “in her amended complaint, Wiley added several claims under New Jersey state law which only undermines her contention that this Court is especially competent to adjudicate the state laws at issue in this dispute.” Wiley also alleged a nationwide class. The court found that the plaintiff’s choice of forum mattered little when she alleged a nationwide class.
