If Proposition 37 passes, food-based companies may experience onslaught of lawsuits

Proposition 37 – which requires food manufacturers to provide full information on their labels regarding genetically modified ingredients in their products – may impact grocers, farmers and food companies, according to a press release issued by No on 37: Coalition Against the Deceptive Food Labeling Scheme. Three major law firms based in California and elsewhere stated that if this legislation passes, an influx of lawsuits is likely to happen.

"Prop 65 has led to 16,000 lawsuits and close to $500 million in settlements, much of which has gone directly to plaintiffs' lawyers for fees and costs," the firm Alston and Bird stated on their website. "Similarly, Prop 37 will likely impact many California businesses and may create an atmosphere favorable to private enforcers, leading to frequent litigation and settlements."

Other firms have also mentioned how this legislation will expose groceries and food companies to potential courtroom battles. In general, this legislation allows lawsuits to  be filed against any food product that does not have a label, regardless of whether the plaintiffs lack evidence or research claiming genetically modified ingredients are present in the food substances.

On the other side of the debate stand chefs, according to the San Francisco Chronicle. More than 350 chefs have pledged their support of Proposition 37, including Mario Batali, Cat Kora and Charles Phan.

Businesses that wish to avoid the legal battles that may ensue if Proposition 37 is passed would be wise to ensure all of their products – especially genetically modified foods – include compliant labels.

As California is such a large demographic, many experts believe that if the law passes, it will soon become a nationwide trend. As such, Arizona-based companies in the food industry may need to work with Phoenix business attorneys who offer real-world business solutions and can lead a company through the complications of new legislation.
 

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