Labeling
"Product of the U.S.A." Label Not Subject to State Deceptive Trade Law
Nathan A. Adams IV
In Thornton v. Tyson Foods, Inc., No. 20-2124, 2022 WL 727628 (10th Cir. March 11, 2022), a consumer who purchased beef from retail stores filed a class action complaint against meat processors, alleging that their "Product of the U.S.A." labels deceived her and other consumers into paying higher prices for beef based on the mistaken belief that it originated from cattle born and raised in the United States. A multi-generational rancher in New Mexico filed a separate class action complaint alleging that he and other ranchers were paid less for their domestic cattle as a result of meat processors' conduct and, more specifically, as a result of placing the label on already-slaughtered beef that they import into the country. The cases were consolidated. The district court dismissed the complaints for violations of the unjust enrichment, breach of warranty, violation of the New Mexico Unfair Practices Act, violation of state antitrust law and false advertising. A split court of appeals affirmed the dismissal on the grounds that an express preemption provision of the Federal Meat Inspection Act preempted the deceptive labeling claims notwithstanding that a label was optional. That provision prohibits states from imposing any "labeling … requirements in addition to, or different than" the federal requirements. Under federal law, the meat processors' products were not misbranded;...
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