Antitrust Law Daily Wrap Up, ADVERTISING NEWS: Chipotle misrepresents “GMO Free” menu, consumer claims, (Aug 31, 2015)

By Greg Hammond, J.D.

Chain restaurant company Chipotle Mexican Grill, Inc. has made false and misleading representations that all of its food products contain “non-GMO ingredients,” according to a complaint filed Friday in the federal district court in San Francisco. GMOs are genetically modified organisms to which customers commonly attach an unhealthy, negative perception, the complaint alleges (Gallagher v. Chipotle Mexican Grill, Inc., August 28, 2015).

Chipotle owns and operates a nationwide chain of casual Mexican fast-food restaurants that sell four main menu items, according to plaintiff Colleen Gallagher, including burritos, burrito bowls, tacos, and salads. Gallagher claims Chipotle capitalized on the perception that GMOs are unhealthy by launching a multi-media publicity campaign touting that it was the “first national company” in the food industry to serve a menu devoid of GMOs. While Chipotle allegedly represented that “all” of the ingredients used in its food products are “non-GMO,” the company purportedly served meat products that came from animals that feed on GMOs; sour cream and cheese from dairy farms that feed animals with GMOs; and Coca-Cola and other soft drinks that contain corn-syrup, a GMO. The complaint consequently alleges that consumers, including Gallagher, have been deceived into buying and paying more for Chipotle’s food than they otherwise would have paid.

The three count complaint alleges that Chipotle’s deceptive conduct violates California’s Consumer Legal Remedies Act (CLRA), Unfair Competition Law (UCL), and False Advertising Law (FAL).

Gallagher seeks to represent all persons residing in California from April 27, 2015 to the present, who purchased and/or paid for Chipotle food products. She requests an order certifying the case as a class action against Chipotle and appointing her as the representative of the class; actual damages and/or restitution; declaratory and injunctive relief, enjoining Chipotle from continuing the allegedly unlawful practices; prejudgment interest; and all costs, expert fees, and attorney fees.

The case number is 15-CV-3952.

Attorneys: Laurence D. King (Kaplan Fox & Kilsheimer LLP) for Colleen Gallagher.

Companies: Chipotle Mexican Grill, Inc.

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