Kraft Class Action Seeks Decision in False Advertising Lawsuit

Plaintiffs in a class action lawsuit alleging Kraft Food Group Inc. falsely advertised its fat-free cheese as “natural” asked a federal judge to make a decision on the case in a motion filed last week.

Lead plaintiffs Claudia Morales and Mocha Gunaratna alleged in their class action lawsuit filed in 2014 that Kraft purposefully deceives consumers by falsely advertising its fat free cheddar cheese product as “natural” when it contains artificial coloring.

The plaintiffs state that the artificial ingredients found in the cheese allegedly cause health concerns for some Kraft consumers, especially children, as artificial coloring reportedly causes hyperactivity or sets off an allergic reaction.

The plaintiffs allege that Kraft violates California’s False Advertising Law as well as the Consumer Legal Remedies Act.

In September of 2014, Kraft successfully argued that the plaintiffs’ claims were not specific enough; however, the federal judge allowed the plaintiffs to amend their complaint and resubmit it to the court. The plaintiffs’ proposed Class was previously certified.

Kraft asked the federal judge to stay the proceedings in the class action lawsuit in December of this year. Kraft argued that a decision shouldn’t be made because the Ninth Circuit and the Food and Drug Administration were ruminating on how the word “natural” could be used on food labels and their decisions could affect the outcome of this case.

In opposition, the Class representatives filed a motion asking the federal court to fast track a decision in the case. The plaintiffs argue that the issue of using the term “natural” has been unchanged for the past 25 years. The FDA has determined that “natural” may only be placed on food labels when the product doesn’t contain artificial color, argue the plaintiffs.

The plaintiffs also state in their motion that Kraft’s use of the term “natural” on fat-free cheese was on-its-face false because Kraft admitted that the cheese contains artificial coloring. Thus, argue the class action plaintiffs, Kraft has confirmed that it violated California’s False Advertising Law when it placed “natural” on the cheese packaging.

The plaintiffs further contend that because Kraft has admitted to violating California state false advertising laws, it also violated California state’s unfair competition laws.

“Here, the court need not inquire whether defendant made true statements that had a capacity to deceive, because the undisputed facts demonstrate Kraft’s advertising was literally false, and that Kraft knew (or certainly should have known) it to be false,” the plaintiffs wrote. “In evaluating whether a statement is false, the court looks to the words of the statement itself, and compares those words to the actual facts. Plaintiffs easily meet this standard.”

The plaintiffs are represented by Ryan J. Clarkson and Shireen M. Clarkson of Clarkson Law Firm PC; Gillian L. Wade and Sara D. Avila of Milstein Adelman LLP.

The Kraft Cheese False Advertising Class Action Lawsuit is Claudia Morales, et al. v. Kraft Foods Group Inc., Case No. 2:14-cv-04387, in the U.S. District Court for the Central District of California.

UPDATE: On May 24, 2016, Kraft Foods asked a California federal judge not to grant partial summary judgment in a false advertising class action lawsuit accusing the food company of including artificial ingredients in its “natural” fat-free cheddar cheese.

UPDATE 2: On May 30, 2016, the plaintiffs argued that Kraft Foods has “flip-flopped” its position on artificial ingredients in their motion for partial summary judgment.

UPDATE 3: On June 13, 2016, a California federal judge tentatively rejected consumers’ bid for class certification in a lawsuit alleging Kraft Foods falsely labeled certain cheese products as “natural,” stating that the case is more complicated that previously thought.

UPDATE 4: On Sept. 5, 2016, the plaintiffs in a Kraft class action lawsuit say Kraft’s motion for summary judgment should be denied now that enough evidence is in the record to show the company may have labeled some of its products deceptively.

UPDATE 5: On Dec. 6, 2016, Kraft lost its renewed motion to stay a consumer class action lawsuit over claims it falsely marketed its shredded fat free cheddar cheese as “natural” when it allegedly contains artificial ingredients, flavor, and coloring.

UPDATE 6: On February 15, 2017, Kraft filed a motion to decertify the class action lawsuit which alleges the company does not use “all natural” ingredients.