New York Attorney General (AG) Letitia James is suing JBS USA Food Company and JBS USA Food Company Holdings under New York’s consumer protection laws for allegedly attempting to boost consumer sales by making sustainability claims in its advertising that it had “no viable plan” for achieving.
The companies are subsidiaries of the Brazilian meat processing conglomerate JBS S.A., the world’s largest producer of beef products.
In her statement announcing the complaint, James faulted the company for claiming that it “will achieve net zero greenhouse gas emissions by 2040, despite documented plans to increase production, and therefore increase its carbon footprint.” James said that the company’s claims about reducing greenhouse gas emissions were “misleading the public about its environmental impact” to “capitalize on consumers’ increasing desire to make environmentally friendly choices.”
The AG’s complaint, which was filed in the New York County Supreme Court on February 28, alleges that “[a]cross its marketing materials, the JBS Group has made sweeping representations to consumers about its commitment to reducing its greenhouse gas emissions, claiming that it will be ‘Net Zero by 2040.'” However, according to the complaint, the JBS Group “has had no viable plan to meet its commitment to be ‘Net Zero by 2040.'”
According to the complaint, “[i]n a recent proceeding defended by the JBS Group, the National Advertising Division (NAD) of the Better Business Bureau determined that the JBS Group’s “Net Zero by 2040″ marketing claim is unsubstantiated and misleading to consumers and recommended that the JBS Group stop making that claim.” The complaint alleges that the National Advertising Review Board, NAD’s appellate body, upheld that decision, and that “[d]espite these industry admonishments, the JBS Group has continued to make the same or similar claims to consumers … .”
The five-count lawsuit brings claims under Sections 349 and 350 of the New York General Business Law. The former prohibits deceptive acts or practices in the conduct of any business, trade, or commerce in New York. The latter prohibits false advertising in the conduct of any business, trade, or commerce or in the furnishing of any service in New York. The suit also alleges fraud in violation of Section 63(12) of the New York Executive Law.
James’ lawsuit asks the court to enjoin JBS USA from making the challenged marketing claims; to require the company to disgorge profits, funds, and assets traceable to the challenged conduct; impose a $5,000 per violation penalty under Section 350 of the New York General Business Law; impose a $1,000 per violation penalty under Section 349 of the New York General Business Law; and to order JBS USA “to perform and provide to the State six-month and 12-month independent audits of all consumer-facing publications to ensure compliance with” New York consumer protection laws.
Why It Matters
New York’s lawsuit against JBS USA represents an extension of state AGs’ increasingly prevalent use of their broad authority under state consumer protection laws to bring enforcement actions based on corporate representations related to climate change. While previous suits have focused on the fossil fuel industry’s alleged downplaying of the role that greenhouse gas emissions have played in climate change, James’ action against the JBS Group extends the theory to include commitments regarding reductions in greenhouse gas emissions in company advertising and marketing efforts.
Additional article on State Attorneys General offices in the “Net-Zero” space:
Troutman Pepper State Attorneys General Team
Ashley Taylor – Co-leader and Firm Vice Chair Ashley is co-leader of the firm’s nationally ranked State Attorneys General practice, vice chair of the firm, and a partner in its Regulatory Investigations, Strategy + Enforcement (RISE) Practice Group. He helps his clients navigate the complexities involved with multistate attorneys general investigations and enforcement actions, federal agency actions, and accompanying litigation. |
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Clay Friedman – Co-leader Clayton is a partner in the firm’s Regulatory Investigations, Strategy + Enforcement (RISE) Practice Group and co-leader of the State Attorneys General practice, multidisciplinary teams with decades of experience crafting effective strategies to help deter or mitigate the risk of enforcement actions and litigation. |
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Judy Jagdmann Judy is a partner in the firm’s Regulatory Investigations, Strategy and Enforcement (RISE) practice, based in the Richmond office. She brings experience serving as chair and commissioner of the Virginia State Corporate Commission (VSCC) from 2006 through 2022, which includes regulating the utilities, insurance, banking, and securities industries. She also served as Virginia’s attorney general from 2005-2006. |
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Stephen Piepgrass Stephen leads the firm’s Regulatory Investigations, Strategy + Enforcement (RISE) Practice Group. He focuses his practice on enforcement actions, investigations, and litigation. Stephen primarily represents clients engaging with, or being investigated by, state attorneys general and other state or local governmental enforcement bodies, including the CFPB and FTC, as well as clients involved with litigation, with a particular focus on heavily regulated industries. |
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Avi Schick A former deputy attorney general of New York, Avi applies his experience in bet-the-company matters, representing clients in criminal and civil investigations and enforcement actions before state and federal regulators, prosecutors and enforcement agencies. |
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Michael Yaghi Michael is a partner in the firm’s State Attorneys General and Regulatory Investigations, Strategy + Enforcement (RISE) Practice Groups, nationwide teams that advise clients on consumer protection enforcement matters and other regulatory issues. |
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Samuel E. “Gene” Fishel Gene is a member of the firm’s Regulatory Investigations, Strategy + Enforcement (RISE) practice, based in the Richmond office. He brings extensive regulatory experience, having most recently served as senior assistant attorney general and chief of the Computer Crime Section in the Office of the Attorney General of Virginia, and as special assistant U.S. attorney in the Eastern District of Virginia for 20 years. |
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Tim Bado Tim is an associate in the firm’s Regulatory Investigations, Strategy + Enforcement (RISE) Practice Group, where he represents corporations and individuals facing potential civil and criminal exposure. Tim’s experience in government investigations, enforcement actions, and white-collar litigation spans a number of industries, including financial services, pharmaceutical, health care, and government contracting, among others. |
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Chris Carlson Chris Carlson represents clients in regulatory, civil and criminal investigations and litigation. In his practice, Chris regularly employs his prior regulatory experience to benefit clients who are interacting with and being investigated by state attorneys general. |
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Natalia Jacobo Natalia is an associate in the firm’s Regulatory Investigations, Strategy and Enforcement (RISE) practice. She focuses her practice on two primary areas: government contracting and state attorney general work. |
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Namrata Kang Namrata (Nam) is an associate in the firm’s Regulatory Investigations, Strategy + Enforcement (RISE) Practice Group, based in the Washington, D.C. office. She routinely advises clients on a wide variety of state and federal regulatory matters, with a particular emphasis on state consumer protection laws relating to consumer financial services and marketing and advertising. |
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Michael Lafleur Michael is an associate in the firm’s Regulatory Investigations, Strategy, and Enforcement Practice Group. Based out of the firm’s Boston office, Mike has deep experience in litigation, investigations, and other regulatory matters involving state-level regulators and state attorneys general. |
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Susan Nikdel Susan is an associate in the firm’s Consumer Financial Services Practice Group, and focuses her practice on consumer financial services matters. She has defended several of the nation’s largest and most influential financial institutions in individual and class action litigation involving the Telephone Consumer Protection Act (TCPA), Fair Credit Reporting Act (FCRA), Fair Debt Collection Practices Act (FDCPA), and other consumer privacy statutes. |
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John Sample John is an associate in the firm’s Regulatory Investigations, Strategy + Enforcement (RISE) Practice Group. He focuses his practice on a wide range of general and complex litigation matters, including shareholder disputes, fraud, products liability, breach of contract, and Biometric Information Privacy Act claims. |
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Whitney Shephard Whitney is an associate in the firm’s Regulatory Investigations, Strategy + Enforcement (RISE) Practice Group. She represents clients facing state and federal regulatory investigations and enforcement actions, as well as related civil litigation. |
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Trey Smith Trey is an associate in the firm’s Regulatory Investigations, Strategy + Enforcement Practice. He focuses his practice on helping financial institutions and consumer facing companies navigate regulatory investigations and resulting litigation. |
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Daniel Waltz Daniel is a member of the firm’s Regulatory Investigations, Strategy + Enforcement (RISE) Practice Group and State Attorneys General team. He counsels clients in connection with navigating complex government investigations, regulatory compliance, and transactions, involving state and federal government contracting obligations. Drawing on his broad experience as a former assistant attorney general for the state of Illinois, Daniel is a problem solver both inside and outside the courtroom. |
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Stephanie Kozol Stephanie is Troutman Pepper’s senior government relations manager in the state attorneys general department. |