Reynolds Wrap maker must face lawsuit over 'Made in USA' claim
By Jonathan Stempel
NEW YORK (Reuters) -The maker of Reynolds Wrap aluminum foil must face a proposed class action claiming it misled consumers who wanted to "buy American," by falsely claiming that its foil was "Made in USA," a U.S. judge ruled on Monday.
U.S. District Judge Andrew Carter in Manhattan said consumers can try to prove that Reynolds Consumer Products violated New York state consumer protection laws by using false and misleading packaging for its namesake foil.
Reynolds and its lawyers did not immediately respond to requests for comment.
According to the complaint filed last March, substantially all bauxite in Reynolds' foil comes from outside the United States, where little of the ore is produced, and much of it is eventually transformed into aluminum outside the United States.
This made Reynolds' "Foil Made in USA" claim false and misleading to reasonable consumers, because they would spend more on products "made in America," the complaint said
The plaintiff, Anaya Washington of Bronx, New York, said she bought Reynolds Wrap at Target and other stores, believing the brand as trustworthy and familiar as Kleenex and Vaseline, and wouldn't have bought the foil had she knows where it came from.
In seeking a dismissal, Reynolds said Washington relied on generic "overpayment" accusations rather than show harm.
It also called the case "another lawyer-driven class action seeking to profit from a truthful 'Made in the USA' statement."
But the judge said Washington plausibly alleged she paid more than she would have but for the "Foil Made in USA" label. The lawsuit seeks at least $5 million of damages.
Many lawsuits accuse companies of using imprecise labeling that induces shoppers to pay more, including through appeals to their patriotism.
In 2021, the U.S. Federal Trade Commission adopted a "Made in USA Labeling Rule" to protect businesses and consumers from being misled over product origins.
U.S. President Donald Trump, meanwhile, is encouraging global businesses to manufacture more products in the United States.
Washington's lawyer did not immediately respond to a request for comment.
The case is Washington v Reynolds Consumer Products LLC, U.S. District Court, Southern District of New York, No. 24-02327.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Boston Globe
4 minutes ago
- Boston Globe
US imposes sanctions on a Palestinian NGO and other charities, accusing them ties to militant groups
The federal government claims that Addameer 'has long supported and is affiliated' with the Popular Front for the Liberation of Palestine, a secular, left-wing movement with a political party and an armed wing that has carried out deadly attacks against Israelis. Israel and the United States have labeled the PFLP a terrorist organization. Get Starting Point A guide through the most important stories of the morning, delivered Monday through Friday. Enter Email Sign Up Addameer did not immediately have a comment on the sanctions. Advertisement Israel has alleged that Addameer funds terrorism, a claim that the United Nations previously said it could not support with compelling evidence. In a 2022 The organization also works with Amnesty International, Human Rights Watch and is a member of the World Organization Against Torture. Israel's 2022 storming of Addameer's offices, prompted a rebuke from the UN, who said in a statement that Israel had not provided convincing evidence to support the claim. The UN said Addameer was conducting 'critical human rights, humanitarian and development work in the Occupied Palestinian Territory.' Advertisement In February, Zachor Legal Institute, an Israeli-American advocacy group that says it focuses on combatting antisemitism and terrorism, requested Addameer be added to Treasury's sanctions list. Marc Greendorfer, president of Zachor Legal Institute said in an email to the Associated Press that his group is 'very pleased to see Treasury following up on our request.' He said the federal government should act 'to prevent hostile foreign actors from spreading hate and violence in the United States. We applaud Treasury's action and encourage Treasury to expand its focus to the other groups that we identified.' Other entities hit with sanctions Tuesday include: The Gaza-based charity Al Weam Charitable Society and its leader The Turkish charity Filistin Vakfi and its leader El Baraka Association for Charitable and Humanitarian Work and its leader The Netherlands-based Israa Charitable Foundation Netherlands and two employees The Italy-based Associazione Benefica La Cupola d'Oro A Because the majority of crowdfunding activity is legitimate, 'this status can make it more difficult for law enforcement attempting to investigate potential (terrorist financing) cases with a crowdfunding and online fundraising nexus,' the report said. Frankel reported from Jerusalem.
Wall Street Journal
12 minutes ago
- Wall Street Journal
Fortress Reacts to the Tillis-Hern Tort Reform
We take issue with your editorial 'Ending a Tax Break for Lawsuits' (June 5). You assert that 'foreign investors in U.S. litigation don't have to pay tax on lawsuit proceeds because the tax code exempts foreigners from paying U.S. capital-gains tax, and their legal payouts are treated as capital gains.' But this isn't true for Fortress, an American company, whose investment decisions are made by our U.S. leadership. We have never allowed any non-U.S. investor to treat recoveries from legal assets as exempt from tax by characterizing income as capital gains. Investments in U.S. legal assets by our funds are subject to the usual corporate or ordinary income-tax rates and rules. American corporations use legal financing, like that offered by some Fortress-managed funds, because using the court system isn't free. This financing isn't about 'harming U.S. businesses' or targeting corporations. It helps American businesses spend less of their money on pursuing justified claims and more on job creation and economic growth.
Boston Globe
12 minutes ago
- Boston Globe
Whole Foods supplier hack leaves empty shelves, stalls forklifts
Advertisement In a Monday email to customers, a UNFI representative said they are 'working toward the goal of returning to full operational capacity by' June 15 or sooner and apologized for any disruption to their clients' businesses, according to a copy of the message reviewed by Bloomberg News. The cybersecurity firm CrowdStrike Holdings Inc. is helping UNFI respond to the incident, according to a person familiar with the matter who spoke on condition of anonymity because they were not authorized to discuss it. 'We believe we are managing the incident capably with a very strong team of inside and outside professionals, including specialized experts,' Douglas said Tuesday on the call. 'We will continue to keep our customers, suppliers and associates regularly updated on our progress and next steps.' Advertisement A UNFI forklift operator, who asked not to be named because they weren't authorized to speak on the matter, said they were sent home on Friday as a result of the hack. Managers were unable to call staff to tell them to avoid coming in because of the systems being down, the person said. Some forklift drivers were asked to return to work on Sunday and resorted to pen and paper to prepare shipments for when UNFI is able to fulfill orders again, the person said. National Co+op Grocers, a UNFI partner, said in a message to its representatives said that the organization was making special requests to UNFI to continue to provide top-selling products in some capacity, according to a copy of the message seen by Bloomberg News. 'We recognize that this is far from optimal, but it is the best and only option we have available to resume shipments from UNFI currently and get some products flowing into your stores,' the June 8 message said. Neither UNFI nor National Co+op Grocers responded to requests for additional comment. At a Whole Foods in Manhattan, shelves that normally held ice cream, white bread and yogurt were empty when a Bloomberg News reporter visited on Monday. Store employees declined to comment on the matter. Whole Foods is working to restock its shelves as quickly as possible, according to a company spokesperson. UNFI first noticed unusual network activity on June 5, then by the evening of June 6 had gathered enough information to warrant a complete shutdown of its network, Douglas said Tuesday. The incident resulted in a nationwide systems outage involving all business systems from ordering to selection and shipping, according to the National Co+op Grocers message. Advertisement The hack on UNFI amounts to an attack on US critical infrastructure, said Andrew Howell, vice president of government affairs at the cyber firm SentinelOne Inc. Such incidents demonstrate how the ease of buying groceries relies on tight supply chains which are vulnerable because they 'are controlled by information and operational technology,' he said. 'One of the biggest pieces of magic of the American economy, particularly in the last 20 years is our ability to have just-in-time delivery of goods right across the country, through neighborhoods and around the world,' Howell said. 'And when you see situations like this happen you realize how frail that system becomes.' With assistance from Will Kubzansky.
