Hain Celestial Must Face ‘Natural’ Waffle Labeling Class Action Lawsuit

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On Oct. 3, Hain Celestial Group Inc.’s bid to dismiss a false labeling class action lawsuit alleging the company misleads consumers by labeling their products as “all natural” was denied by the presiding California federal judge. Hain Celestial will continue to face the majority of the allegations brought against it, including misleading reasonable customers through false labeling.

U.S. District Court Judge William H. Orrick III agreed with plaintiff Ana Belen Ham’s argument that the presence of sodium acid pyrophosphate (SAPP), a synthetic leavening agent, in Hain’s Earth’s Best “all natural” waffles was enough to uphold the false labeling class action lawsuit allegations of fraud, warranty and consumer protection claims to move forward.

According to Judge Orrick’s ruling, “Ham’s argument is simple: a reasonable consumer would not expect to find SAPP in the ‘all natural’ waffles because SAPP is not a natural ingredient.” While the judge has upheld several of claims and will allow the Earth’s Best waffles false labeling class action lawsuit to proceed, he did throw out the plaintiff’s claims of unjust enrichment and breach of contract.

Prior to this dismissal, Hain Celestial argued that SAPP is an ingredient present on the U.S. Food and Drug Administration’s list of foods that are allowed to be labeled as “USDA certified organic,” which, according to the defendant’s motion to dismiss the false labeling class action lawsuit, is a more stringent list and standard than the “all natural” label and standards.

In response, Judge Orrick wrote, “Hain might be correct that some consumers believe that organic is a higher standard than ‘all natural,’ but that does not make it implausible that a reasonable consumer would believe that SAPP is not an ‘all natural’ ingredient.” With this response, the false labeling class action lawsuit will continue with further litigation.

Ham filed this false labeling class action lawsuit in May, after she allegedly discovered that the Earth’s Best waffles she purchased on multiple occasions from her local San Francisco stores were not “all natural” as the label claimed they were. Ham seeks to represent herself and a nationwide Class and statewide subclasses of consumers who purchased Hain Celestial’s Earth’s Best Organic Mini Waffles under the reasonable assumption that they were all natural and not made with synthetic materials.

Ham brings several allegations against Hain Celestial in this false labeling class action lawsuit, including violations of the California Consumers Legal Remedies Act and Unfair Competition Law, common-law fraud, negligent misrepresentation, breach of contract, breach of express warranty and unjust enrichment. While Ham’s claims of breach of contract, unjust enrichment, and misrepresentation were thrown out, Judge Orrick has upheld the rest of the claims and will allow the Earth’s Best waffles class action lawsuit to proceed.

Ana Belen Ham is represented by Molly A. DeSario, Scott E. Cole  and Stephen N. Ilg of Scott Cole & Associates APC.

The Earth’s Best “All Natural” Waffles False Labeling Class Action Lawsuit is Ham v. Hain Celestial Group Inc., Case No. 3:14-cv-02044, in the U.S. District Court for the Northern District of California.