One of the most significant news stories I read in 2012 was an article published by The New York Times in August, which described the efforts of lawyers who took on the “Big Tobacco” companies to find a new target in the business community. As the news article explains, these lawyers have now set their sights on large food manufacturers, such as ConAgra, General Mills, Heinz and others.

The underlying theory behind many of these lawsuits is that the manufacturers are mislabeling and/or misleading the public through claims such as that the products are “healthy,” “all-natural,” etc. Unlike a classic product liability lawsuit where someone claims they were injured as a result of using a certain product, in these consumer fraud class actions, the situation is often quite different. A number of these plaintiffs have never even used the product, but rather, they are allowed to proceed simply because they made a purchase.

Why does this matter to me? I don’t manufacture food products.

Although the “Big Tobacco” lawyers are focused on food manufacturers, consumer fraud class actions are being filed across the country against manufacturers in other industries as well. If your company sells consumer products, you may want to review what was put on your labels and whether the claims made can be substantiated. Similarly, if you are a company that distributes consumer products, you may want to inquire with the manufacturers that you do business with.

Over the past few months, I have counseled several manufacturers on the risks associated with these types of consumer fraud class actions. I expect this trend to continue as more lawsuits are filed.

Depending upon your company’s specific situation, it may make sense (with the advice of legal counsel) to think about instituting some or all of the following steps in order to assess the risks to your business:

  1. Institute A Systematic Review of Your Labels and Label Claims
  2. Assess Whether Your Label Claims Are Substantiated (i.e., are they supported by testing (if applicable) or science?)
  3. Consider Whether to Document The Substantiation of Your Label Claims If Not Already Completed (typically, with the advice of legal counsel)
  4. Monitor Consumer Websites such as Amazon.com (often class action lawyers will troll these websites to find consumer complaints and new class action targets)
  5. Review Your Warranty Claims (i.e., are there are trends in the warranty claims that are being made by customers?)

In the end, there are no guarantees that you will not be sued by a plaintiff’s lawyer who believes that your company or product will be their next big conquest. However, there are proactive steps that can be taken to minimize these risks going forward.

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Photo of Jeffrey White Jeffrey White

I am a partner at Robinson+Cole who handles corporate compliance and litigation matters for both domestic and international manufacturers and distributors that make and ship products around the world. My clients have ranged from publicly traded Fortune 500 companies to privately held and/or…

I am a partner at Robinson+Cole who handles corporate compliance and litigation matters for both domestic and international manufacturers and distributors that make and ship products around the world. My clients have ranged from publicly traded Fortune 500 companies to privately held and/or family owned manufacturers. For those looking for my detailed law firm bio, click here.

I am often asked why I have focused a large part of my law practice on counseling manufacturers and distributors. As with most things in life, the answer to that question is tied back to experiences I had well before I became a lawyer. My grandfather spent over 30 years working at a steel mill (Detroit Steel Company), including several years in its maintenance department. One of my grandfather’s prime job duties was to make sure that the equipment being used was safe. In his later years, he would apply those lessons learned in every project we did together as he passed on to me his great respect and pride for the manufacturing industry.

Because of these experiences, I not only feel comfortable advising executives in a boardroom, but also can easily transition to the factory floor. My experience has involved a range of industries, including aerospace and defense, chemicals, energy, pharmaceuticals and life sciences, nutritional and dietary supplements, and retail and consumer products. While I have extensive experience in litigation (including product liability and class actions), I am extremely proactive about trying to keep my clients out of the courtroom if at all possible. Specifically, I have counseled manufacturers and distributors on issues such as product labeling and warranties, product recalls, workplace safety/OSHA, anti-trust, and vendor relations, among other things. I always look for the business-friendly solution to a problem that may face a manufacturer or distributor and I hope this blog will help advance those efforts.