Kraft Loses Bid To Pause ‘Natural’ Cheese Class Action Lawsuit

Kraft Foods Group Inc. 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.

U.S. District Judge John A. Kronstadt refused to grant Kraft’s motion to pause the case pending FDA action on “natural” guidance, stating that FDA guidance has no bearing to the central issue of this case.

Judge Kronstadt told the parties that the question at hand is not whether Kraft violated FDA guidelines but rather if the “natural” cheese label is deceptive to a reasonable consumer.

“FDA standards are not determinative of the ultimate question presented by the [Unfair Competition Law], [False Advertising Law] and [Consumers Legal Remedies Act] claims. That issue is whether the reasonable consumer is likely to be deceived by product packaging,” Judge Kronstadt said, citing a previous order in the case.

Judge Kronstadt also denied Kraft’s motion to dismiss the class action last week, stating there are triable issues of fact.

Plaintiffs Claudia Morales and Mocha Gunaratna originally filed the complaint in 2014 in California Superior Court but it was later removed to federal court.

Morales and Gunaratna allege that Kraft Natural Cheese, Shredded Cheese and Cheddar Fat Free products contain artificial colorings despite being labeled as “natural.”

The lawsuit further claims that artificial coloring poses health concerns for certain consumers, as it could cause hyperactivity in children or allergic reactions.

Initially Judge Kronstadt tentatively denied class certification, but then later certified a Class of consumers, restricting the case to people who had bought the product because of its “natural” labeling and therefore were “misled” by the company.

In his ruling Tuesday, the judge told the parties that “to prevail on their claims, plaintiffs must show that the term ‘natural cheese’ is material to, and deceives, the reasonable consumer. Compliance with FDA regulations does not ‘automatically shield’ Kraft from a claim under the relevant statutes.”

Kraft has vigorously defended its product, arguing the cheese’s coloring ingredients – annatto extract and titanium dioxide – are derived from a plant seed and a mineral, respectively, and therefore are not artificial.

The company motioned for summary judgment in the case on grounds that the plaintiffs’ assumption that artificial coloring means “artificial ingredient” was conflating separate issues.

Morales and Gunaratna challenged the order for summary judgment, asserting that a reasonable consumer would believe the “natural” labeling means the cheese is not artificially colored.

Kraft also argued that the consumers failed to show scientific or expert evidence to support their claims that they were misled into thinking the orange coloring was 100 percent natural.

However, during a September hearing, Judge Kronstadt ruled there was sufficient evidence to plausibly call into question whether consumers were misled by the label.

A trial date has been set for May 9, 2017.

The Class is represented by Shireen Clarkson and Ryan Clarkson of Clarkson Law Firm PC.

The Kraft Cheese False Advertising Class Action Lawsuit is 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 February 15, 2017, Kraft filed a motion to decertify the class action lawsuit which alleges the company does not use “all natural” ingredients.