On behalf of Thaler Law posted in business formation on Monday, February 4, 2019.
California district attorneys recently won a significant case brought against a few well-known chocolate companies. Chocolate makers Russell Stover and Ghirardelli recently came under fire and faced business litigation due to certain packaging issues that led to consumers receiving much less product than they actually paid for. The two companies are facing fines that amount to $750,000, and they have to adjust some of their packaging techniques as well.
The prosecution accused the two successful candy companies of knowingly and deliberately packing some of their products in a way that deceived consumers. One specific issue is the selling of containers that were essentially empty, containing much less chocolate than expected. Consumers who brought the complaint believe the company was intentionally trying to mislead them.
The lawsuit claimed that the practices engaged by the two companies violated certain consumer protection laws. Specifically, the containers that were sold were packed in a way to make it look like there was more product than there actually was. California consumers who believe they are not getting full value for what they paid for may bring civil claim against the company.
Businesses facing allegations of unlawful practices, including violating consumer protection laws, could face damaging and expensive business litigation. It is smart for a company to take immediate action to develop an effective and strong defense strategy against these claims. It is possible to defend against these charges, avoid expensive fines and protection the reputation of the company. A business will find it beneficial to first seek an evaluation of the case before proceeding.