Taco Bell Lawsuit

8/7/2019 Taco Bell Lawsuit

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Case 8:11-cv-00101-DOC -FFM Document 1 Filed 01/19/11 of 18 Page ID #:6

RLED • S O U T H E f U ~ OMfil9,N. ~ CLERK U.S. DISTRICT COU

I JNII92011

c'EN'fAAl.DISlftIar oF O A U ~.._., _. _._.

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·v.

TACO BEILCORPORATION,

Defendant

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Attorneys for Plaintiff

UNITED STATES DISTRIcr COURT

Q!NTRAL DISTRICT OF CALIFORNIA

SOlITHBRN DMSION SAev

11-601011>0~ ~ N : I : : r ~ f o f CuoNo.: ClftIM.Situated and the General Pu: lie, CLASS ACI'ION

Plaintiff, CLASS ACI'IONCOMPLAINT FOR:

1. VIOLATIONS OF CONSUMERS~ r l l o ~ C l V l L2. VIOLATI· OF THB AIR.

COMP ON LAW,

BUSINESS & PROmSIONSCODE 117200, ET SEQ.

DEMAND FOB: JURy lJUAl..

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Plaintiff Amanda Obney, by and through her attorneys, brings this action

on behalf of herself, all others similarly situated and the general public against

defendant Taco Bell Corporation ("Taco Bell" or "Defendant"). The Court has

jurisdiction over this action pursuant to 28 U.S.C. §l332(d)(2). Plaintiff alleges,

on information and belief, except for the information based on personal

knowledge, as follows:

NATURE OF THE ACTION

1. This is a consumer rights class action challenging Taco Bell's

practice of representing to consumers that the filling in many of its ' 'beef' food

items is "seasoned ground beef' or "seasoned beef," when in fact a substantial

amount of the filling contains substances other than beef. Rather than beef, these

food items are actually made with a substance known as "taco meat filling." Taco

meat filling mostly consists of "extenders" and other non-meat substances. Taco

meat filling is not beef. In fact, it does not meet the minimum standards set by

the United States Department of Agriculture ("USDA") to be labeled or

advertised as "beef," seasoned or otherwise. This action seeks to require Taco

Bell to properly advertise and label these food items and to engage in a corrective

advertising campaign to educate the public about the true content of its food

Products (defined below).

2. Plaintiff brings this action pursuant to Federal Rules of Civil

Procedure 23(a) and (b)(2) on behalf of herself, all similarly situated consumers

of the menu items advertised and labeled by defendant as containing "seasoned

ground beef' or "seasoned beef' and the general public. Plaintiff seeks to halt

the dissemination of Taco Bell's false and misleading advertising message, and

correct the false and misleading perception it has created in the minds of

consumers.




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12. For example, Taco Bell describes its diet product, "Fresco Soft

Taco," as "a warm, soft flour tortilla filled with seasoned ground beef, crisp

shredded lettuce, and fiesta salsa." It describes its Crunchy Taco as "a crunchy,

com taco shell filled with seasoned ground beef, crisp shredded lettuce, and real

cheddar cheese." It describes its spicy beef "Volcano® Burrito as "a warm, soft

flour tortilla that's packed with a double portion* of seasoned ground beef,

seasoned rice, crunchy red tortilla strips, real cheddar cheese, cool reduced fat

sour cream and cheesy molten hot lava sauce." In fact, for each of these food

items and its other Products, the "seasoned ground beef' is not ground beefwith

seasoning but "tacomeat filling."

13. On its website, www.tacobell.com. Taco Bell repeats these

misrepresentations and omissions and the contents of its advertisements:

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14. Taco Bell's television commercials, restaurant menus and print

advertisements make the false and deceptive misrepresentations and omissions

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that the "beef' Products contain "seasoned ground beef," and not a product of

substantially lower quality that does not meet the definition for beef. For

example:

15. Taco Bell's advertisement that it sells "beef' menu items containing

"seasoned ground beef," is unsubstantiated, false and misleading. The Products,

unbeknownst to consumers, are comprised substantially of meat filling and are

mislabeled. Taco Bell's "seasoned beef' actually contains among other

ingredients, water, "Isolated Oat Product," wheat oats, soy lecithin,

maltodrextrin, anti-dusting agent, autolyzed yeast extract, modified corn starch

and sodium phosphate, as well as beef and seasonings.

16. Taco Bell's definition of "seasoned beef' does not conform to

consumers' reasonable expectation or ordinary meaning of seasoned beef, which

is beef and seasonings. Merriam-Webster defines "beef' as "the flesh of an adult

domestic bovine (as steer or cow) used as food."

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17. Taco Bell's use of the term "seasoned beef' also violates and is

otherwise inconsistent with the United States Department of Agriculture's

("USDA") definition. The USDA defines "beef' as "flesh of cattle." 7 C.F.R.

§1260.l19. "Ground beef' "shall consist of chopped fresh and/or frozen beef

with or without seasoning and without the addition of beef fat as such, shall not

contain more than 30 percent fat, and shall not contain added water, phosphates,

binders, or extenders." 9 C.F.R. §319.15.

18. The USDA has developed the Food Standards and Labeling Policy

Book (the "Policy Book"). The Policy Book provides "guidance to help

manufacturers and prepare product labels that are truthful and not misleading."

The Policy Book requires food labeled as "Taco filling" to contain "at least 40

percent fresh meat." In addition, "[t]he label must show the true product name,

e.g., 'Taco Filing with Meat,' 'BeefTaco Filling,' or 'Taco Meat Filling. '"

19. Internally, Taco Bell refers to its "seasoned ground beef' and

"seasoned beef' as "taco meat filling," even labeling the containers shipped to its

restaurants correctly, while not telling its customers. The label reads:

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CLASS ACTION ALLEGATIONS

20. Plaintiffbrings this lawsuit on behalfof herself and the proposed

Class members under Federal Rules of Civil Procedure Rule 23(a) and (b)(2).

The proposed Class consists of:

All persons in the United States who purchased any food productfrom Taco Bell that was advertised or labeled as a containing

"beef," "seasoned ground beef' or "seasoned beef."

21. The Class is comprised of many tens of thousands of consumers

throughout California and the United States. The Class is so numerous that

joinder of all members ofthe Class is impractical.

22. This action involves questionsof

law and fact commontothe

plaintiff and the members of the Class which include:

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(a) Whether Taco Bell has engaged in an unlawful, unfair,

misleading or deceptive business act or practice through their labeling and

advertising practices;

(b) Whether Taco Bell's labeling and advertising is misleading

and/or likely to deceive regarding the nature of the Products;

(c) Whether the Taco Bell Products contain beefwith a seasoning

or taco meat filling;

(d) Whether Taco Bell's alleged conduct violates public policy;

and

(e) Whether plaintiff and Class members are entitled to

declaratory and injunctive relief, including enjoining Taco Bell from continuing

to misrepresent the nature of the Products, and requiring Taco Bell to engage in a

corrective advertising campaign.

23. The plaintiff's claims are typical of the claims of the members of the

Class. The named plaintiff is a member of the Class of victims described herein.

24. Plaintiff will fairly and adequately protect the interests of the Class

and has no interests adverse to or which conflict with the interests of the other

members of the Class. Plaintiff has engaged counsel who are experienced in the

prosecution of this type of action.

25. Unless a class-wide injunction is issued, Taco Bell will continue to

commit the violations alleged, and the members 9f the Class and the general

public will continue to be misled.

26. Taco Bell has acted or refused to act on grounds that apply generally

to the Class so that final injunctive relief and corresponding declaratory relief is

appropriate respecting the Class as a whole.

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C 8 11 00101 DOC FFM D t 1 Fil d 01/19/11 P 11 f 18 P ID # 16




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FIRST CAUSE OF ACTION

Consumers Legal Remedies ActCivil Code §1750 et seq.

27. Plaintiff realleges and incorporates by reference the allegations

contained in the paragraphs above as if fully set forth herein.

28. This cause of action is brought pursuant to the Consumers Legal

Remedies Act, Civil Code §1750, et seq. (the "Act"). Plaintiff is a consumer as

defined by Civil Code §1761(d). The Products are goods within the meaning of

the Act.

29. Taco Bell violated and continues to violate the Act by engaging in

the following practices proscribed by §1770(a) of the Act in transactions with

plaintiffand the Class which were intended to result in, and did result in, the sale

of the Products:

(a) Representing that [the Products have] . . .

characteristics, . . . uses [or] benefits . . . which [it does] not

have . . . .

(b) Representing that [the Products are] of a

particular standard, quality or grade if [they are] of another.

(c) Advertising goods with intent not to sell

them as advertised.

30. Taco Bell violated the Act by making the representations described

above when it knew, or should have known, that the representations were

unsubstantiated, false and misleading.

31. Pursuant to §1782(d) of the Act, plaintiff and the Class seek a Court

order enjoining the above-described wrongful acts and practices of Taco Bell,

and for corrective advertising.

32. Pursuant to §1780(d) of the Act, attached hereto as Exhibit A is the

affidavit showing that this action has been commenced in the proper forum.

]0



Case 8:11-cv-00101-DOC -FFM Document 1 Filed 01/19/11 Page 13 of 18 Page ID #:18



Case 8:11 cv 00101 DOC FFM Document 1 Filed 01/19/11 of 18 Page ID #:18

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38. As stated in this Complaint, plaintiff alleges violations of consumer

protection, unfair competition and truth in advertising laws. Plaintiff asserts

violations of the public policy of engaging in false and misleading advertising,

unfair competition and deceptive conduct towards consumers. This conduct

constitutes violations of the unfair prong of Business & Professions Code

§17200, et seq.

39. There were reasonably available alternatives to further Taco Bell's

legitimate business interests, other than the conduct described herein.

40. The foregoing conduct also violates Business & Professions Code

§l7200's prohibition against "fraudulent" or deceptive business practices.

Defendant's misrepresentations on its labels, brochures, website, menus,

packaging and in television and internet advertisements that the Products are

"beef," and contain "seasoned ground beef' or "seasoned beef," are likely to and

did deceive reasonable consumers, including the plaintiff, into believing the

Products had specific ingredients which they did not.

41. Taco Bell's advertising, including its labeling, as described herein,

also constitutes unfair, deceptive, untrue and misleading advertising.

42. Taco Bell's conduct caused and continues to cause substantial injury

to plaintiff and the other Class members. Plaintiff has suffered injury in fact and

has lost money or property as a result of Taco Bell's unfair conduct.

43. As a result ofTaco Bell's violations of the DCL, and similar laws in

effect in other states, plaintiffand Class members are entitled to the relief against

defendant, as set forth in the Prayer for Relief.

44. Additionally, pursuant to Business & Professions Code §17203,

plaintiff seeks an order requiring Taco Bell to immediately cease such acts of

unlawful, unfair and fraudulent business practices, and requiring Taco Bell to

engage in a corrective advertising campaign, including notification of the true

content and ingredients ofTaco Bell's Products.

]2




Case 8:11 cv 00101 DOC FFM Document 1 Filed 01/19/11 of 18 Page ID #:19

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PRAYER FOR RELIEF

Wherefore, plaintiffprays for a judgment:

A. Certifying the Class as a class action;

B. Awarding declaratory and injunctive relief, including enJommg

defendant from continuing the unlawful practices as set forth herein, and

continuing to misrepresent the true contents and ingredients of their Products;

C. Directing defendant to engage in a corrective advertising campaign;

D. Awarding plaintiffattorneys' fees and costs; and

E. Awarding such further reliefas may be just and proper.

JURY DEMAND

Plaintiffdemands a trial byjury on all issues so triable.

Dated: January 19,2011 BLOOD HURST & O'REARDON, LLPTIMOTHY G. BLOODLESLIE E. HURSTTHOMAS J. O'REARDON II~ 6

IM G.BLOOD

600B S t r e e ~ Suite 1550San Diego, cA 92101Telephone: (619) 338-1100FaCSImile: (619) 338-1101t b l o o d ~ b h o l a w . c o mlhurst holaw.comtorear [email protected]

BEASLEYrlALLEN, CROW, MEHVIN,

PORTIS & M I L E ~ P.C.W. D A N I E L M I L E ~ , ITI

WILLIAME. HOPKINS, JR.218 Commerce StreetPost Office Box 4160Montgomery, AL 36104Telepnone: 334/269-2343334/954-7555 (fax)D e e . M i l e s ~ e a s l e y ' [email protected]

Attorneys for Plaintiff

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g g

,N c" Address:Tun O. Blood ([email protected])

BI Hurst&O'Rcardon. LLP

.600 S t r e ~ Suite lSSOSan iego, CA 92101

619 38·11006191338·IlOI (fax)

l1NlTED STATESDISTRICTCOURTCENTRALDISTRICf Oll' CALIFORNIA

A' NDA OBNEY.On BehalfofHmel£. AD OthOl'S CASSNUMBER

subi arly Situated and the General Public SACVU-GOI0i nn,." ' ~ ( F F M x )v.

TA BELL CORPORATION

SUMMONS'

DEPBNDAN'I'(S).

TO:· DEFENDANT(S):__ ~ ~ - = - - ; " " ; ; , : ; ; ; = - . . . : - . . . , , . . . - : . .__. ";;" _

A lawsuithas been :filed against you.

. Within 21 days after service of this .on you (not countins the day you received it), you

must erve aD the plaintiff an answer to the attached IJI complaint 0 . amended complaintD laim 0 ClOS8--c1aim or amotion under awe 12 of-the Federal R11Ies ofCivil Procedure. The answeror Iri tion must be served on tho plaintiff's attorney, Timothy G. Blood •whose address is·810' Hurst& OIRcardonLLP 600 a.Street Suite 1550. SanDie ,CA 92101 . I fyou fail to do so,j cm.t by defaultwill be entered against you for the ~ J i c f demandedmhe complaint. You also must fileyour. wer ormotion with the court.

Clerk, ~ . S . DistrictCourt

By: - - - - - ~ - - - . . . ; ; - - I

{U8e dayaVtM tkfend.!mt t, lb. Unltlll StrdR or Q United $t4Iu. apu:y, or;' t i l l oJlioo or employft oftlu! U"itsd&tata. Allow"

. 60 . u,Rule12(rl)(3)).

C V ~ 1 (12m) SUMMONS



UNITED STATES DISTRICTCOURT

CENTRALDISTRICTOF CALIFORNIA

NOTICEOF ASSIGNMENT TO UNITEDSTATESMAGISTRATE JUDGE FORDISCOVERY

This case hasbeen assigned to District Judge David O. Carter and the assigneddiscoveryMagistrate Judge is Frederick F. MllDlm.

The case number on all documents tiledwith the Court should read 88 follows:

SACV11- 101 DOC ( r ~ )Pursuant to GeIleral Order 05-07 of the United States DistrictCourtfor the Central

Districtof

Califomia, the Magistrate Judgehas

beendesignated to

hear discovery relatedmotions.

All discovery relatedmotions should be noticed on the calendar of theMagistrate Judge

----------------------------------------_.-------------------------------------_.

NOnCE TO COUNSEl

Acopy of thltI notice muat be S81V8CIwith the SUmmonB end OOI1fJ/aInton eN defend8ntr (Ifa f8trICJV8IBCIIon 18

filed, 8 copy of thIa noticemustbe SfJMId on all pIaJntJff8).

Subsequentdocuments mustbe filed at the following loc81Ion:

L.J Western DM.lon312 N. SprIng St.. Rm.G-8Lot Angel. . . CA10012

lXI Southem D1v1.1on U Eatem DIvision

411 Wul Fourth It., RIft. 1-GS3 3470 Twelfth st., Rm. 13488ntaAna, CA 8270104118 RIvwIIcIe. CA 82501

Failure to file at Ihe proper-Iocellon will resuilin your doeumlntll being relLmed to you.

CV·18 (03ttI8) NOTICE OF ASSIGNMENTTO UNITED STATES MAGISTRATE JUDGE FOR DISCOVERY

Taco Bell Lawsuit

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