As marketers, you need to support all advertising claims.  However, sometimes a claim might appear ambiguous and therefore you might conclude it is not necessary to support. Because food boxes are so popular now we thought we would report on a claim made by a food manufacturer where the definition of “local” was one focus of the case. As many of you might be aware, the “local” food movement is growing and can be an effective claim to use in advertising to differentiate against competitors. Although it might not be clear from a definitional perspective exactly what “local” means, a recent case illustrates that the lack of a legal definition does not negate the need to have the facts to support any claim about your goods and services.

Bimbo Bakeries USA filed a lawsuit in 2013 against US Bakery for among other things, a violation of trade secrets and for its marketing of Grandma Emilie’s loaves as “Freshly Baked in Utah” and “Fresh. Local. Quality.” Bimbo Bakeries’ complaint claimed false representations of the product, based on the fact that US Bakery had no production sites in the state. U.S. Bakery filed for summary judgement, arguing in part that the word “local” falls “within the category of non-actionable words because the term is vague and not measurable and is therefore merely an opinion.”

The court disagreed.  The court held that “Because the term local does not carry a set definition, whether the term is false or misleading is a question appropriate for the fact finder” and denied summary judgment. The case, therefore, went to trial.

Earlier this month, a Utah federal court awarded Bimbo Bakeries USA $2.1 million and determined that US Bakery engaged in false advertising in addition to violating trade secrets. The court determined that the words ‘Fresh. Local. Quality” were indeed deceptive.  It is also interesting to note that the jury attributed over $8 million in profits to the false advertising.

Takeaway: 

Although there are still no precise answers or definitions for what is meant by “local,” this case reiterates that companies are responsible to ensure that they have substantiation for all claims made in advertising, which can include slogans and tag lines. For subscription services and subscription box companies focused on food, this includes whether the food they source or produce is in fact “local.”