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  Alex Avery
October 31, 2007
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  Ruth Kava, Ph.D., R.D.
August 29, 2007
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  Alex Avery
August 13, 2007
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Trader Joes Consumer Complaint Regarding Minnesota market
 
 
Dan Bane, CEO
Trader Joe’s
800 S. Shamrock Avenue
Monrovia, CA 91061
626-599-3700
 
Dear Mr. Bane:
 
We are writing to bring to your attention serious consumer concerns regarding false and misleading dairy marketing and related practices found in retail outlets in the Minneapolis, Minnesota market. We are asking that you address these marketing issues specifically found in Trader Joe’s retail stores. In addition to harming consumers, dairy producers, and dairy processors, these concerns involve activities which potentially violate state and federal laws. We know that as a responsible member of the business community you will want to promptly address these issues. We are asking for your immediate attention and offering our support to address this serious concern.
 
The Center for Global Food Issues (CGFI) conducts research and analysis of agriculture and the environmental concerns surround food and fiber production. The Center uses its worldwide overview of food and farming to assess policies, improve farmers’ understanding of the new globalized farm economy, and heighten awareness of the environmental impacts of various farming systems and food policies. As such, CGFI has joined a coalition of science, agriculture and consumer organization in the filing of complains with state and federal regulators regarding false and misleading labels, marketing and related materials being used in the dairy industry. Copies of correspondence, complaints and related publicity can be found online at http://www.stoplabelinglies.com/.
 
We have extensive research into the labeling, advertising and other marketing practices of various dairy packagers’ products sold in your stores. The Center has recently completed in-store reviews of retail outlets in the Minneapolis, Minnesota market. We are also reviewing producer, cooperative and processor surveys conducted in Minnesota and surrounding areas which suggest that production demands linked to false or misleading marketing practices are growing. These demands are creating unfair economic and other burdens for dairy producers and processors who supply safe, affordable and high-quality dairy products to your customers.
 
Our in-store reviews, which included interviews with your dairy case managers, reveal a range of practices which may violate federal and state law, U.S. Food and Drug Administration guidelines and state regulations regarding the labeling, advertising and marketing of foods – in particular dairy products, and specifically fluid milk. Our review of pricing in stores such as yours suggests that consumers are paying 50 to 200 percent premiums for dairy products carrying these claims – sometimes paying these premiums for brands of milk produced at the same plant as less-expensive store brands available in the same dairy case. We must assume that consumers would only pay more for the exact same milk if they were misled to believe these products were somehow qualitatively or compositionally different when they are not. Extensive survey and focus group data supports this assumption and shows that consumers are being mislead about milk safety, nutrition and quality linked to false or misleading absence claims. Our particular concerns include:
  • Milk labels, in-store displays, and other marketing materials which violate state and federal guidelines for making truthful and non-misleading claims;
  • Lack of awareness of state and federal laws regarding truthful and non-misleading marketing of dairy products by retailers – in particular, dairy case managers; and,
  • False or misleading information provided by retailers regarding dairy product health, nutrition and/or quality claims.
We want to emphasize our belief in commercial free speech and in consumers\\\\\\\' rights to be fully informed about the products they purchase. The practices that concern us, however, mislead consumers, damage dairy-farm economics, distort markets and promote farming practices with potentially negative environmental consequences. We feel confident that responsible retailers, such as your company, would not want to be a party to any such irresponsible, unethical and illegal practices.
 
Our recent in-store reviews found over one dozen brands of fluid milk, yogurt, butter, ice cream and other dairy products with false or misleading labeling and marketing claims carried by grocery chains, including yours, in this market. In addition, our consumer interviews with dairy case managers from multiple stores representing eight major Minneapolis-area grocery chains including yours found 75 percent provided incorrect or non-responsive information to inquiries regarding distinctions between dairy products making antibiotic-, hormone- or pesticide-absence claims.
 
These absence claims being marketed in your stores, which consumer research shows to be misleading, are now influencing your dairy case managers who are providing false information to consumers about important health and nutrition issues. Thousands of consumers and dairy producers have signed a petition urging you to support truthful and non-misleading marketing to your customers. Copies of these petitions and accompanying signatures have been posted to the Web site http://www.stoplabelinglies.com/.
 
We specifically request:
  • You review the various dairy products carried by your stores and work with your suppliers to ensure that they comply with state and federal regulations for truthful and non-misleading marketing claims – to include labels, in-store displays and all other corresponding promotional information (e.g., Web sites, coupons, advertising, etc.) linked to their products. We ask that you pledge to carry only dairy products which comply with truthful and non-misleading labeling and advertising guidelines in any particular marketing standards in your stores;

  • You ensure that your dairy case managers and other employees who answer consumer questions regarding dairy (and other food) products you carry have access to accurate information so as to not mislead or provide false information to your customers about the products you sell. We ask that your post a CGFI-developed “Milk is Milk” dairy-case education poster behind your dairy case or in appropriate stocking areas to help educate your employees so they can accurately respond to consumer inquiries about safety, nutrition and quality concerns linked to dairy labels and marketing claims; and

  • You or an appropriate representative of your company meet with our organization to discuss these concerns to review the steps you are taking to ensure that your company is not party to unethical, illegal or otherwise damaging dairy marketing practices.
Thank you for your consideration and timely response to our request. We intend to share our findings with Minnesota state regulators shortly and would welcome sharing any positive response from you regarding your plans to address this problem in our complaint.
 
Sincerely,
Alex Avery, director of research and education
Hudson Institute, Center for Global Food Issues
on behalf of the Stop Labeling Lies Coalition
 
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