Consumer class action lawsuits targeting foods for alleged false and misleading labeling rose sharply in 2020. Although this trend may appear to threaten the food and beverage industry, courts are applying the “reasonable consumer” standard with a “real world” perspective, dismissing cases despite plaintiffs’ alleged subjective confusion about the labeling at issue because the hypothetical “reasonable consumer” would not have been misled.
On April 24, 2019, the United States Supreme Court issued its decision in Lamps Plus, Inc., et. al. v. Varela, No 17-988. In a 5-4 opinion, the Court held that an ambiguous agreement cannot provide the requisite contractual basis to support a finding that the parties agreed to submit a dispute to class arbitration.
Ruling in a class action brought against Uber Technologies, Inc., the U.S. Court of Appeals for the First Circuit recently held that the company’s arbitration clause could not be enforced because it was not “reasonably communicated” to its customers during the online contracting process. The decision is a stark reminder that great attention needs to