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Regulatory Issues

UPSIDE Foods Sues Florida Over Cultivated Meat Ban

The Institute for Justice, a nonprofit, public interest law firm, filed a lawsuit challenging a newly enacted Florida law that bans the production, distribution, and sale of cultivated meat, which allows consumers to enjoy the taste of meat grown directly from real animal cells, without the need to raise or kill animals.

The lawsuit, which was filed in the U.S. District Court for the Northern District of Florida, argues that Florida’s ban violates the Constitution’s provisions that prohibit protectionist measures designed to favor in-state businesses at the expense of out-of-state competitors. By targeting cultivated meat, which is produced outside Florida, the law seeks to protect local meat producers from competition, undermining the principles of a national common market.

“If some Floridians don’t like the idea of eating cultivated chicken, there’s a simple solution: Don’t eat it.” said Paul Sherman, a senior attorney at the Institute for Justice. “The government has no right to tell consumers who want to try cultivated meat that they’re not allowed to. This law is not about safety; it’s about stifling innovation and protecting entrenched interests at the expense of consumer choice.”

To bring this lawsuit, IJ partnered with UPSIDE Foods, a pioneering company in the field of cultivated meat. Founded by cardiologist Dr. Uma Valeti, UPSIDE Foods was born out of a transformative experience Valeti had while running a student kitchen in college. When he needed to buy meat at a slaughterhouse, he was profoundly dismayed to see animals suffer.

Vowing to find a more humane and sustainable way to produce meat, he established UPSIDE Foods in 2015, which now produces chicken meat grown directly from real chicken cells. This innovative process allows UPSIDE Foods to produce meat without the need for raising and slaughtering animals, providing a cruelty-free alternative that maintains the taste and texture of conventional meat. In fact, UPSIDE’s chicken is cooked and prepared the same way as conventional chicken.

UPSIDE’s chicken has been given a green light by both the FDA and USDA, affirming its safety and quality. And because it is cultivated in a controlled environment, the process has the potential to reduce the risk of food borne illnesses, contaminations, and other issues present in modern animal agriculture.

“Anyone who wants to try cultivated meat should have the opportunity to do so,” said Valeti. “Our mission is to offer a delicious, safe, and ethical alternative to conventional meat, and we believe Floridians deserve the freedom to make their own food choices. Cultivated meat represents a significant advancement in food technology with the potential to improve supply chain resilience and we are committed to making it available to all.”

On May 1, Florida Gov. Ron DeSantis signed SB 1084, banning the manufacture, sale, or distribution of cultivated meat in Florida. It went into effect on July 1, 2024. In a statement announcing the law, Florida Commissioner of Agriculture Wilton Simpson made its protectionist motivations clear, saying: “We must protect our incredible farmers and the integrity of American agriculture . . . . Together, we will keep Florida’s agricultural industry strong and thriving.” Gov. DeSantis said cultivated meat “is designed to be a threat to agriculture as we know it. . . . [W]e’re snuffing this out at the beginning.”

“For the same reason that California cannot ban orange juice made from oranges grown in Florida, Florida cannot ban UPSIDE’s meat,” explained IJ Attorney Suranjan Sen. “A major purpose for enacting the Constitution was to prevent exactly this kind of economic protectionism, ensuring that all Americans can benefit from a free and open national market. Florida cannot ban products that are lawful to sell throughout the rest of the country simply to protect in-state businesses from honest competition.”

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Strike Force Discusses Grocery Prices, Price Gouging in Industries

The Federal Trade Commission and the Department of Justice virtually co-hosted the first public meeting of the Strike Force on Unfair and Illegal Pricing to discuss Strike Force enforcement actions taken to lower prices for Americans.

FTC Chair Lina M. Khan, DOJ Acting Associate Attorney General Benjamin Mizer, Assistant Attorney General Jonathan Kanter, and Principal Deputy Assistant Attorney General Brian Boynton, along with other agencies on the strike force convened to highlight the following enforcement actions:

Khan highlighted the FTC’s recent work to stop corporate lawbreaking that raises prices for Americans, including uncovering evidence of corporate conduct that may raise the price of gas, working to lower the cost of many asthma inhalers to just $35 out-of-pocket, and making it easier for Americans to cancel online subscriptions they don’t want. Chair Khan announced that she will ask the Commission to launch an inquiry into grocery prices in order to probe the tactics that big grocery chains use to hike prices and extract profits from everyday Americans at the checkout counter.

Mizer described DOJ’s efforts to tackle unlawful behavior that affects the prices Americans pay for their groceries, transportation, and health care. Kanter highlighted the historic and concrete actions Antitrust Division staff are undertaking to enforce the law and lower prices in higher education, housing, transportation, food, agriculture, live music, healthcare and other vital industries.

Boynton highlighted the Civil Division’s work to combat fraudulent pricing schemes involving government agencies and financial institutions, as well as schemes designed to defraud consumers through unfair and deceptive marketing or billing practices.

U.S. Department of Agriculture Deputy Secretary Torres Small highlighted the all-of-USDA approach to tackling food and agricultural pricing challenges for farmers and consumers alike, including an ongoing investigative study on retail concentration and market practices as well as landmark efforts to modernize the Packers & Stockyards Act rulebook and build a competition partnership with state attorneys general.

U.S. Department of Health and Human Services Deputy Secretary Andrea Palm spoke on HHS’s work to make health care affordable, transparent, and fair for everyone. Increasing competition and transparency, lowering prescription drug prices, and expanding access to health care are key ways to make sure our health care system is working for all Americans.

Acting U.S. Department of Transportation General Counsel Subash Iyer spoke about DOT’s work to protect airline passengers from unfair practices that can make it more expensive to fly, including by proposing a ban on family seating junk fees and investigating Delta’s refund, reimbursement, and customer service problems during the recent IT meltdown.

U.S. Securities and Exchange Commission Chair Gary Gensler spoke about the SEC’s work to address unfair, deceptive, and anticompetitive business practices. The SEC is the cop on the beat for the securities markets. The agency’s rulemaking projects promote transparency, access, and fair dealing in the markets. And through market oversight, including examining registrants and reviewing tens of thousands of filings each year, the SEC guards against fraud and deceptive practices and promotes competition.

U.S. Federal Communications Commission Chairwoman Jessica Rosenworcel spoke about the FCC’s work to tackle unfair and deceptive pricing tactics in the communications sector, including by implementing new rules that will slash the exorbitant rates that incarcerated people and their families pay to stay connected.

Consumer Financial Protection Bureau Director Rohit Chopra spoke about the CFPB’s work on junk fees, highlighting a report on school lunch fees, and a recently launched inquiry into junk fees in mortgage closing costs. The CFPB continues its work on all aspects of the credit card market, including looking into bait-and-switch rewards tactics, curbing excessive fees, and ensuring competition, all against the backdrop of interest rate margins hitting an all-time high. Additionally, the agency announced further scrutiny on the role of private equity investors in price gouging.

In March 2024, at the sixth meeting of the White House Competition Council, President Biden announced the launch of the Strike Force to strengthen interagency efforts to root out and stop illegal corporate behavior that hikes prices on American families through anti-competitive, unfair, deceptive, or fraudulent business practices.

The Federal Trade Commission works to promote competition, and protect and educate consumers. The FTC will never demand money, make threats, tell you to transfer money, or promise you a prize. You can learn more about how competition benefits consumers or file an antitrust complaint. For the latest news and resources, follow the FTC on social media, subscribe to press releases and read our blog.

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FDA Rules Tara Flour Fails to Meet GRAS Standard

The U.S. Food and Drug Administration has determined that tara flour in human food does not meet the Generally Recognized As Safe (or GRAS) standard and is an unapproved food additive. The FDA’s assessment of the ingredient is detailed in a memo added to the agency’s public inventory. Increased transparency of our assessment of ingredients in the food supply is part of our approach to enhance food chemical safety.

Under the Federal Food, Drug, and Cosmetic (FD&C) Act, any ingredient used or intended for use in food must be authorized by the FDA for use as a food additive unless that use is Generally Recognized As Safe or GRAS by qualified experts or meets a listed exception to the food additive definition in the FD&C Act. An unapproved food additive is deemed to be unsafe under the FD&C Act.

In 2022, Daily Harvest used tara flour in a leek and lentil crumble product which was associated with roughly 400 adverse event reports. The firm took prompt action to voluntarily recall the product and conduct its own root cause analysis, during which they identified tara flour as a possible contributor to the illnesses. To date, the FDA has found no evidence that tara flour caused the outbreak; however, it did prompt the agency to evaluate the regulatory status of this food ingredient.

The FDA’s evaluation revealed that there is not enough data on the use of tara flour in food, or a history of its safe use, to consider it GRAS. There is no food additive regulation authorizing the use of tara flour in food.  Uses of food ingredients that are not GRAS, not authorized as food additives, and not excepted from the Federal Food, Drug, and Cosmetic (FD&C) Act’s food additive definition are unapproved food additives. Food that is, or contains, an unsafe food additive is considered adulterated.

Manufacturers who are considering using tara flour as an ingredient in food are responsible for ensuring that its use is safe and lawful and are encouraged to consult with the FDA. At this time, the FDA is not aware of evidence that shows that tara flour is a food ingredient being developed domestically or that there are any products containing tara flour that are currently being manufactured in the United States.

The FDA instituted screening at ports of entry for tara flour used as an ingredient in imported food or imported for sale in bulk. The agency has not detected any recent shipments of that flour in imported products as of today.

The FDA remains committed to monitoring new ingredients in the food supply to ensure they meet relevant safety standards. The FDA’s assessment of chemicals in the food supply is part of our commitment to food safety and public health.

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