People v. JBS USA Food Co.

New York State Attorney General Letitia James filed a complaint in New York Supreme Court against JBS USA Food Company and JBS USA Food Company Holdings (JBS USA) alleging that the defendants—the “largest producer of beef products in the world”—made unsubstantiated and misleading environmental marketing claims about their commitment to reducing greenhouse gas emissions in violation of New York State’s consumer protection statutes. The complaint alleged that beef production contributes significantly to climate change through emissions of greenhouse gases and through land-use changes that reduce or eliminate carbon sinks, and that the top five meat and dairy corporations are responsible for more annual greenhouse gas emissions than ExxonMobil, Shell, or BP, individually, with JBS USA and its parents, subsidiaries, and affiliates (the JBS Group) being the top contributor. The complaint alleged that JBS USA knows that demand for its products will decrease if consumers view them as unsustainable and harmful to the environment and that the JBS Group had directed representations regarding its sustainability to New York consumers, including representations regarding the “Net Zero by 2040” commitment it made in 2021. New York alleged that self-regulating advertising industry groups had found this claim to be misleading. New York also contended that the JBS Group’s greenhouse gas emissions calculations have not accounted for Scope 3 emissions resulting from Amazon deforestation and other land use changes in its supply chain and that the Net Zero by 2040 commitment also was misleading based on the JBS Group’s plans to increase demand for its products. The complaint requested that the court enjoin JBS USA from violating the consumer protection statutes; order the defendants to disgorge profits traceable to these violations; grant civil penalties; perform independent audits of consumer-facing publications; and pay the State’s costs and attorneys’ fees.