Merrell v. Florida Crystals Corp.

A greenwashing consumer class action filed in the federal district court for the Northern District of California alleged that Florida Crystals and its parent company deceived and misled consumers into purchasing their sugar products. The complaint alleged that the defendants advertised their products as beneficial for the environment and as helping to fight climate change when in fact the companies’ sugarcane harvesting involves pre-harvest burns that result in “substantial volumes of unnecessary greenhouse gases,” as well as other air pollutants. The complaint alleged that “[r]esearchers have found that switching from burning to green harvesting—i.e., slashing—reduces greenhouse gas emissions during the harvest period by approximately 24 percent.” The complaint also alleged that beyond the harvest period burned sugarcane fields release approximately 37% more soil-bound carbon dioxide than green-harvested fields. The complaint also alleged that the burn-harvesting methods cause localized impacts including soil damage. The plaintiffs asserted violations of California’s False Advertising Law, Consumer Legal Remedies Act, and Unfair Competition Law, as well as breach of warranty and unjust enrichment/restitution claims. The relief sought included declaratory and injunctive relief; damages, restitution, and/or disgorgement; punitive damages, statutory penalties, and/or monetary fines; and attorney fees and costs.