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RetailWhole Foods

Whole Foods Just Won Its Big Legal Battle With PETA

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Reuters
Reuters
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By
Reuters
Reuters
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April 27, 2016, 1:30 PM ET
FEXXFDARAPAHOEBEEF_CM55 Start to finish story on organic grass fed beef from the Arapaho Ranch in Wyoming. The beef in the case at the Whole Foods Market in Boulder on Monday, September 21, 2009. Cyrus McCrimmon, The Denver Post
Photograph by Cyrus McCrimmon — Denver Post via Getty Images

Whole Foods Market (WFM) won the dismissal of a lawsuit by a well-known animal rights group that accused the grocery chain of deceiving consumers into believing the meat it sells is raised more humanely than normal, resulting in overcharges.

People for the Ethical Treatment of Animals said the use by Whole Foods of a five-step rating system for beef, chicken, pork, and turkey was a “sham,” because it was not enforced against suppliers, and the standards were at best little better than normal industry practices.

In a decision late on Tuesday, U.S. Magistrate Judge Nathanael Cousins in San Jose, Calif. Said PETA failed to show that Whole Foods’ alleged misrepresentations on in-store signs, placards, and napkins defrauded consumers into overpaying.

Cousins said statements such as “great-tasting meat from healthy animals” and “raised right tastes right” amounted to permissible “puffery” by the Austin, Texas-based company.

He also said the statement that “no cages” were used to raise broiler chickens was not misleading merely because Whole Foods failed to also disclose that poultry suppliers normally do not use cages in the first place.

“Retailers do not have a duty to disclose product information unless it relates to a consumer safety issue,” and PETA did not raise any such issues, Cousins wrote.

The lawsuit was brought by PETA and Lori Grass of Portola Valley, Calif., a town south of San Francisco. It sought class-action status for California consumers who bought Whole Foods meat products over four years.

Neither Whole Foods nor the plaintiffs’ lawyer, Steve Berman, immediately responded to requests for comment.

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