5 High-Profile Packaging Label Lawsuits That Shook the Industry

1. Subway’s “100% Tuna” Lawsuit

In January 2021, a Californian customer filed a lawsuit against fast-food giant Subway, claiming that its tuna products contained ingredients other than tuna. The plaintiff, Nilima Amin, claimed to have ordered Subway tuna products more than 100 times before filing a lawsuit against the fast-food giant.

But after six months of litigation, a California-based judge dismissed the case after Amin ended the lawsuit, claiming that her difficult pregnancy left her unable to pursue the case.

Moreover, the judge rejected the plaintiff’s insistence that tuna was the only acceptable ingredient, arguing that other ingredients such as mayonnaise were okay and a “fact of life.”

Subway representatives said the lawsuit and the plaintiff’s claims resulted in the spread of harmful information, causing damage to the brand and its franchisees.

2. Kind Bars vs. FDA

In March 2015, the U.S. Food & Drug Administration (FDA) issued a warning letter to snack company KIND, saying some of its bars — like the Fruit & Nut Almond & Apricot bar and the Fruit & Nut Almond & Coconut — should remove the term “healthy” from its website and product packaging.

Snack foods labeled with “healthy” cannot have more than 3 grams of total fat or 1 gram of saturated fat per serving, according to the FDA regulations. However, KIND argued that although the fat content of its products exceeded the current rules, it came from nuts and thus considered healthy.

About a year after receiving the FDA warning, KIND was allowed to use the term “healthy” again on its products. But there is one caveat: The snack company can only use the term provided that it’s “presented as its corporate philosophy” and not as a nutrition claim.

3. Vanilla & Honey Fraud Cases

Many food brands use the terms “real vanilla” or “pure honey” despite using cheaper artificial substitutes, leading to class-action lawsuits. For example, Whole Foods Market Inc. was sued in 2021 for allegedly tricking consumers into thinking the vanilla in its “365 Vanilla Almondmilk” came mainly from vanilla beans.

However, a judge from the U.S. District Court for the Northern District of California dismissed the class action lawsuit, explaining that the challenged label did not contain any other words or image that could have suggested that the flavor was derived exclusively from vanilla beans.

Honey Bunches of Oats also faced a similar legal woe. In 2019, plaintiffs claimed the company’s cereal products had misleading and deceptive labeling and marketing. They also mentioned the branding and packaging that included a wooden honey dipper dripping with honey.

However, a Massachusetts federal court dismissed the lawsuit against the food company, explaining that the packaging contained an accurate ingredient list and thus no reasonable consumer would be misled about the honey content of the cereal.

The federal court also argued that the cereals’ packaging labels made no claims about the “objective and measurable quantity of honey.”

4. Welch’s Fruit Snacks Misleading Labeling

Welch’s Fruit Snacks have been the subject of multiple class action lawsuits alleging the company of using misleading labels. For instance, a group of plaintiffs filed a case in September 2015 arguing that the snacks contained mostly a combination of corn syrup, sugar, modified corn starch, dyes, juice from concentrate, and artificial flavors. They also argued that “these are no more healthful than candy.”

U.S. Magistrate Judge Vera M. Scanlon also said the Fruit Snacks packaging is more deceptive than the packaging in Gerber fruit juice snacks.

As part of a class action settlement, the company paid $1.5 million and altered the labels on some of its fruit snacks and the information on its website.

5. Red Bull’s “It Gives You Wings” Settlement

Red Bull settled two class action lawsuits and agreed to pay $13 million to US customers. The terms of the settlement allowed customers who purchased Red Bull products between Jan. 1, 2002 and Oct. 3, 2014 to receive a cash payment worth $10, or $15 worth of Red Bull products.

The plaintiffs argued that they were misled by the company’s exaggerated claims about the benefits of drinking Red Bull, particularly the slogan “Red Bull gives you wings.”

Conclusion

Proper labeling protects businesses from expensive litigations and hefty legal fines and prevents confusion and potential harm to consumers. In addition, it shows a company’ s commitment to the safety and health of people.

Clear, easy-to-understand, and accurate labeling also builds consumer trust, which is the key to brand loyalty and repeat business.

If you don’t know how to create an effective label for your product, check out UPrinting’s beginner’s guide that also explains the key parts of a label, the different types of labels (legal information, back label, and front label), and among others.