Antitrust Law Daily Wrap Up, STATE UNFAIR TRADE PRACTICES—NDIll: Purchase and Sale of Mislabeled Meat Products Violated Consumer Protection Statute, (Jan 31, 2013)

By Jody Coultas, J.D.

Moo & Oink, Inc., a wholesale and retail meat distributor, stated an Illinois Uniform Deceptive Trade Practices Act (UDTPA) claim against Chicago Boxed Beef Distributors, Inc. for allegedly using Moo & Oink’s trademarks on meat products, according to the federal district court in Chicago (Desmond v. Chicago Boxed Beef Distributors, Inc., January 29, 2013, Castillo, R.).

Chicago Boxed Beef had been an authorized supplier of Moo & Oink’s products. However, purchasers were required to contract directly with Moo & Oink, rather than the distributors, in order to buy the products. After the supplier contract ended, Chicago Boxed Beef and other companies allegedly purchased and sold counterfeit meat products that infringed Moo & Oink’s trademarks with the intent to confuse and mislead the public in violation of the UDTPA. Specifically, the companies allegedly passed off the products purchased from Chicago Boxed Beef as those of Moo & Oink, created a likelihood of confusion as to the source of the goods, and represented the products as having sponsorship or approval they did not have.

Moo & Oink stated a UDTPA claim against Chicago Boxed Beef and the other companies for causing confusion in the marketplace, according to the court. In cases where the factual allegations supporting the UDTPA also form the basis of a Lanham Act claim, the legal inquiry is the same for both statutes, and UDTPA claims must be resolved according to principles set forth under the Lanham Act. To state a Lanham Act unfair competition claim, a party must show that the mark was protected under the Lanham Act and that the challenged mark was likely to cause confusion among consumers. The marks were protected, as they were federally registered. The companies’ misuse of the marks caused confusion by leading the public to wrongly believe that the products originated from Moo & Oink and that Moo & Oink approved the products. The unauthorized sales resulted in Moo & Oink having no control over the quality of the meat bearing its marks.

The case is No. 11 C 3545.

Attorneys: Jeff Douglas Harris (Figliulo & Silverman) for Michael K. Desmond. Michael Raymond Collins (Collins & Collins) for Dutch Farms, Inc.

Companies: Chicago Boxed Beef Distributors, Inc.; Moo & Oink, Inc.

Cases: StateUnfairTradePractices IllinoisNews