Olive oil association gives companies dressing down in lawsuit

Trade group the North American Olive Oil Association (NAOOA) has taken on olive oil producer Veronica Foods Company (VFC) and speciality retail sellers in a lawsuit.

Filed on Monday, December 19, at the US District Court for the Eastern District of New York, the suit claimed that the producer and retailers had committed product disparagement, false advertising, deceptive acts and practices, injury to business reputation, defamation and unfair competition.

It has also tried to cancel a trademark owned by VFC.

Established in 1989, the NAOOA is a trade group of marketers, packagers, producers and importers of olive oil for sale in the US and Canada.

In 2015, NAOOA members accounted for approximately 55-60% of total olive oil sales in the US.

According to the suit, the retailers sell olive oil produced and distributed by VFC.

In an effort to promote the products, the retailers and VFC have engaged in a “false and misleading advertising campaign”.

The suit also claimed that the companies have “published false and misleading statements about the quality and health benefits of the olive oil sold in supermarkets and elsewhere, including products sold by NAOOA members”.

It added that the defendants have targeted the NAOOA by publishing disparaging statements attacking the NAOOA’s reputation as an “industry leader in providing quality and purity standards for olive oil”.

The NAOOA added that the defendants have “engaged in a targeted and concerted effort to attack the NAOOA and its members’ olive oil products sold in supermarkets”.

It claimed that the central focus of the campaign has been on an “alleged lack of health benefits associated with the consumption of olive oils sold in supermarkets”.

“Defendants’ conduct, described above, in making false, disparaging and misleading statements about olive oils sold in supermarkets including the NAOOA members’ products, constitutes product disparagement and false advertising,” said the suit.

VFC has also introduced an alleged new “Ultra Premium” standard for olive oil—the UP certification—which the NAOOA said is “nothing more than a marketing effort by VFC to deceive olive oil purchasers”.

The trade association said that the use of the certification and seal is likely to cause consumers to believe that VFC’s products are sponsored or approved by a third party when “in reality, the UP certification and seal is nothing more than a commercial and promotional tool”.

It has requested the cancellation of VFC’s ‘UP’ trademark, US number 4,300,768.

The NAOOA is seeking a jury trial, injunctive relief, removal of any false and misleading statements, advertising to correct the statements, and an account of profits.

It is also seeking an award of exemplary, actual, compensatory, consequential and punitive damages.

In a statement sent to WIPR, VFC said it "stands by the truth and accuracy of all of the statements we have made related to olive oil and our related products. We are committed to providing consumers with the highest quality products available and rely on state-of-the-art scientific research and independent lab testing".

They added: "We believe the NAOOA has filed this lawsuit in an attempt to interfere with our efforts to improve the quality of olive oil and accuracy of olive oil labelling. We look forward to proving the falsehood of inaccurate and self-serving allegations made by the NAOOA in court."