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A pair of consumers say Chobani misled them and others into thinking their products used ethically produced milk using a “watered-down” standard in a class action lawsuit filed Monday.
Lead plaintiffs, Jessica Austin, a Florida resident, and Peter Hoffman, from New York, want to represent other consumers who purchased Chobani products that carry the “Fair Trade Certified” standard. They say the standard, which comes from the Dairy amendment to the Fair Trade USA’s Agriculture Production standards, tricks consumers into thinking the products are made with ethically produced milk that supports dairy workers and the environment.
Labor advocates say that the “Fair Trade Certified” standard is a “sham” and does not support workers or the environment, claim the plaintiffs; however, Chobani labels its yogurt as “Fair Trade Certified,” misleading consumers into thinking they are supporting workers’ rights.
Indeed, both Austin and Hoffman say they paid extra to purchase Chobani “Fair Trade Certified” products. They believed that the extra money was going to support dairy workers, who fall outside of labor regulations.
Contrary to the plaintiffs’ expectations, worker rights groups have lambasted the “Fair Trade Certified” standard, claim the plaintiffs.
“Fair Trade Certified Dairy standards have been challenged as filled with ‘loopholes that leave out the most at-risk workers on dairy farms,’” contends the class action lawsuit.
The plaintiffs point out the Fair Trade program emphasizes “at-will” employment for farm workers, leaving dairy workers with few options even if they are fired for no reason. The Fair Trade grievance process has been criticized as well because it was introduced as a “best practice” rather than a requirement.
The Fair Trade standard also fails to protect immigrant dairy workers and is an obstacle to the organization of a labor union in the industry, claims the lawsuit.
The plaintiffs contend that Chobani could have used the “Milk with Dignity” standard – a leader in representing marginalized dairy workers. Instead, the company dupes consumers into paying more for their product with “a watered-down standard which fails to offer the same level of worker and environmental protections,” claims the class action lawsuit.
“Had Plaintiffs and proposed class members known the truth of the Fair Trade Certified Dairy – that it failed to assure a minimum of basic worker protections, they would not have bought the Product or would have paid less for it,” states the lawsuit.
Austn and Hoffman say that they and other consumers paid a premium for Chobani products, more than $3.99 for 32 ounces, based on the “Fair Trade Certified” standard touted by the company. They accuse Chobani of violating New York and Florida consumer protection laws, breach of warranty, negligent misrepresentation, fraud, and unjust enrichment.
The plaintiffs want to represent other Florida and New York consumers who purchased Chobani yogurt. The class action lawsuit wants Chobani to pay consumers back for the premium it charged on “Fair Trade Certified” yogurt, along with attorney fees and court costs.
Consumers have hit the Greek yogurt giant with other complaints, including a Chobani vanilla flavoring class action lawsuit and a class action lawsuit accusing Chobani of selling moldy yogurt.
Do you purchase Chobani “Fair Trade Certified” products? Do you think the company misled consumers? Tell us in the comment section below!
The plaintiffs are represented by Spencer Sheehan of Sheehan & Associates, PC.
The Chobani Fair Trade False Ad Class Action Lawsuit is Austin, et al. v. Chobani, LLC, Case No. 7:21-cv-05949 in the U.S. District Court for the Southern District of New York.
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