Kraft Heinz Wants ‘Made In U.S.A’ Class Action Tossed

Kraft Heinz has asked a Southern California federal court to toss a proposed consumer class action lawsuit that alleges the company deceived customers by falsely labeling products – including sauces and condiments – as “Made In U.S.A.” when they actually contain foreign ingredients.

Pittsburgh based H.J. Heinz Company L.P. manufactures and distributes Heinz Ketchup, condiments, dressings, sauces, soups, and dessert products. The company was acquired by Berkshire Hathaway and 3G Capital in June 2013 and merged with the Kraft Foods Group Inc. in 2015 to create the Kraft Heinz Company (KHC), the fifth largest food company in the world. The companies manufacture thousands of food products in plants on six continents and markets the products in more than 200 countries and territories.

In November 2015, lead plaintiff Suzanne Alaei, a San Diego resident, purchased a bottle of Heinz 57 that was advertised as “Made In U.S.A.” On Dec. 31, 2015, Alaei filed a class action lawsuit against Kraft Heinz claiming that the product was actually made and/or contained components made outside of the United States. Alaei represents that when making the decision to purchase the products, she took into account the label that promoted the food items as “Made In U.S.A.”

She alleges that Kraft Heinz violated California’s consumer protection laws by labeling their products as “Made In U.S.A.” when the products contained foreign components. Alaei claims that Kraft Heinz violated California laws which provide that it is unlawful for any person, firm, corporation or association to sell merchandise that is labeled as “Made In U.S.A.,” “Made in America, “U.S.A.,” or similar words when the merchandise has been entirely or substantially made, manufactured, or produced outside of the United States.

The complaint further alleges that consumers are vulnerable to deceptive marketing of this type because they have limited knowledge of the components of the product and whether or not they are actually made in the U.S.A.  The complaint alleges many consumers purchase goods represented to be made in America because they believe they are buying a superior product while supporting American companies at the same time.

However, Kraft Heinz retorted that Alaei failed to produce evidence showing where, if not in the U.S., the company obtains its product ingredients nor has she clarified how the specific ingredients in question make the “Made In U.S.A” labeling false.

The company further alleges that the merits of the class action are unfounded, because Alaei only purchased one bottle of Heinz 57, she is not in a position to represent a putative Class of all consumers who purchased Heinz products.

“She cannot expand the scope of her claims to include products she did not purchase,” Kraft Heinz argued. “The statutory standing requirements of the UCL and CLRA are narrowly prescribed and do not permit Alaei’s generalized allegations.”

Kraft Heinz is seeking dismissal of the Made In U.S.A class action lawsuit on the grounds that Alaei’s allegations are entirely conclusive and that nowhere in her complaint does she identify the names of the other “consumable consumer packaged goods” that are allegedly falsely labels nor has she identified the alleged foreign ingredients in Heinz 57 that presumably are in the “similar” products.

Alaei seeks certification of Class of all persons within California who purchased one or more of the Heinz consumable consumer packaged good products regardless of brand under which Heinz marketed the product, that were advertised with “Made In U.S.A.” (or some derivative thereof), that were foreign-made and/or composed of foreign-made component parts, within the four years prior to complaint filing date.

She seeks recovery for economic injury, an injunction for continuation of the wrongful conduct, attorney fees and expenses.

Alaei is represented by Abbas Kazerounian of Kazerouni Law Group APC.

The Kraft Heinz Made In U.S.A Class Action Lawsuit is Suzanne Alaei v. H.J. Heinz Co. et al., Case No. 3:15-cv-02961, in the U.S. District Court for the Southern District of California.

UPDATE: On Mar. 14, 2016, the Heinz 57 sauce shopper says she’s provided enough facts in the “Made in the U.S.A.” false labeling class action lawsuit to keep the case alive despite the defendants push for dismissal.

UPDATE 2 July 21, 2016: The plaintiff who got a second chance at pleading the Kraft Heinz class action lawsuit is facing a second attempt at dismissal.