Serial (or Rather Cereal) Issues in Advertising

This post was written by Rachel Rubin.

If it looks like fruit and sounds like fruit, it must be fruit. Well, not exactly, and please don’t waste our time, says a California court. Ray Werbel recently filed a lawsuit in San Francisco federal court claiming that he bought and ate Froot Loops cereal, believing it was healthy . . . for four years. Upon discovering that it was in fact a sugary children’s cereal, Werbel claims he was misled by Toucan Sam’s claims about “the flavor of froot.” He seeks unspecified punitive and actual damages to be paid to all consumers who, like him, bought Froot Loops under the same mistaken belief.   

The “Froot” in Kellogg’s Froot Loops cereal is not real fruit. Eating the “froot” does not provide the same health benefits of real fruit. We expect the court to dismiss this complaint just as it has recently dismissed similar complaints – and there have been a few of them lately. Though Werbel claims otherwise, he may be a serial cereal litigant. He also brought suit against Pepsi, the maker of Cap’n Crunch with Crunchberries cereal, not realizing that a nearly identical case had been dismissed by the court earlier this year. In May, a judge in the U.S. District Court in the Eastern District of California dismissed a complaint by a woman who claimed she had purchased Cap'n Crunch with Crunchberries because she believed "crunchberries" were real fruit. The plaintiff, Janine Sugawara, alleged that she had only recently learned to her dismay that the "berries" were in fact simply brightly colored cereal balls. Though the colorful “berries” did contain a small amount of strawberry fruit concentrate for color and flavor, it was not enough to be considered an actual strawberry. Judge Morrison England, Jr. stated that:

This Court is not aware of, nor has Plaintiff alleged the existence of, any actual fruit referred to as a "crunchberry." Furthermore, the "Crunchberries" depicted on the [box] are round, crunchy, brightly-colored cereal balls, and the [box] clearly states both that the Product contains "sweetened corn & oat cereal" and that the cereal is "enlarged to show texture." Thus, a reasonable consumer would not be deceived into believing that the Product in the instant case contained a fruit that does not exist. . . . So far as this Court has been made aware, there is no such fruit growing in the wild or occurring naturally in any part of the world. 

Noting that normally the loser on a motion to dismiss would get a chance to amend the complaint, that was not going to happen here:

In this case, . . . it is simply impossible for Plaintiff to file an amended complaint stating a claim based upon these facts. The survival of the instant claim would require this Court to ignore all concepts of personal responsibility and common sense.  The Court has no intention of allowing that to happen.

More on the decisions here, here, and here.   

In other breakfast news, consumers filed a $5 million class action suit against General Mills over its claims that Cheerios helps to lower cholesterol. Suits by consumers in three states were consolidated in federal court in New Jersey last week. The suits were prompted by a warning the FDA issued to General Mills in May on the claims that Cheerios “can lower your cholesterol 4 percent in 6 weeks” and has been “clinically proven to lower cholesterol.” As we previously reported, the FDA said that Cheerios’ claims regarding its benefits in the prevention and treatment of a disease (hypercholesterolemia) likely make it a drug under FDA standards. Cheerios responded to the FDA, arguing that its claims are not unlawful disease claims, and that the claims are consistent with the FDA’s health claim regulations. General Mills says it is in talks with the FDA to resolve the issue. General Mills’ answer to the complaint is due at the end of the month.

Why This Matters

Besides setting the media and blogosphere abuzz with bad puns and witticisms (nor could we help ourselves), this case is interesting from an advertising perspective. It reminds us that the court has a sense of humor, and, more importantly, addresses the “reasonable person” standard. It affirms two important points: (1) that the “reasonable person” is expected to have some common sense, some perspective, and to not take things so literally, but (2) companies are still accountable for the content of their advertising, especially when statements cross the line from marketing messages to health- or scientific-related claims. 

As always, you can contact the author, Rachel Rubin, Adam Snukal or any other Reed Smith attorney with whom you regularly work, for more information or assistance.

ASA Report on Green Advertising

The UK Advertising and Standards Agency (ASA) has recently published a report in response to an increase in consumer complaints regarding misleading environmental claims in advertisements. Companies and advertising agencies have been accused of "green washing" advertisements - making environmental claims that are less about saving the planet and more about exploiting consumer concerns. Particularly open to challenge are claims about CO2 emission and phrases such as carbon "neutral," "zero" and "negative," and claims about energy sources. A number of companies have recently fallen afoul of the ASA adjudication process by making misleading claims, including Shell Oil, British Gas, Lexus and Ryanair.

One of the biggest problems faced by advertisers is that the definition of "green" is always changing and scientific research can be open to interpretation. Advertisers are further hindered by unclear ASA and Committees of Advertising Practice (CAP) guidance on the subject. The report suggests that both advertisers and the ASA often lack the technical expertise to effectively vet environmental claims.

The ASA Director General has said that the ASA needs to:

1) Ensure that ASA/CAP staff expertise is up-to-date and comprehensive in order to evaluate environmental claims effectively.
2) Ensure the advertising code review process responds to the views of consumers and companies.
3) Investigate whether the CAP guidelines could be more explicit, even if this means that guidelines would need to be fluid because of the fast-evolving nature of science and technology in this sector.
4) Work with advertising agencies and companies alike to bolster technical understanding of issues and existing rules on environmental claims.

To avoid falling afoul of the ASA, and to avoid the costs and negative publicity associated with a negative adjudication, companies and advertisers must be certain when producing and clearing advertisements that environmental claims are accurate and can be clearly justified.

Environmental Marketing in Europe

This forum was written by Avv. Felix Hofer.

1. The European Approach

1.1. Up till now the Europe Union did not issue a set of harmonizing principles and rules meant to specifically govern 'environmental/green marketing'.

The main reason for such approach was not disinterest from the EU's institutional bodies towards the issue, but probably the conviction of being the traditional regulations on commercial communication perfectly suitable to cover this specific area in a sufficient and proper way.

In fact, these provisions had already established a number of basic principles requiring all commercial communication to:

  • not be misleading to the targeted public2,
  • be “readily recognizable as such and be distinguishable from editorial content” (and all surreptitious promotional messages to be explicitly banned)3,
  • not encourage behaviour grossly prejudicial to the protection of the environment4,
  • not to result in a misleading commercial practice5, a result that would occur any time:
    • «it contains false information and is therefore untruthful or in any way, including overall presentation, deceives or is likely to deceive the average consumer, even if the information is factually correct, in relation to one or more of the following elements..: (a)..the nature of the product, (b) its...main characteristics...such as its availability, benefits, risks, execution, composition, accessories, .. method and date of manufacture or provision, delivery, fitness for purpose, usage, .. or
      the results to be expected from its use»6,
    • «it omits material information that the average consumer needs, according to the context»7, where «information requirements established by Community law in relation to commercial communication including advertising or marketing, a non-exhaustive list of which is contained in Annex II, shall be regarded as material»8.

Click here to read more.