Chipotle Mexican Grill announced earlier this year that it has removed genetically modified organisms (GMO) from its food supply declaring in April that the move makes it the first restaurant company in the U.S. to only use food ingredients that are free of the controversial GMO.
The burrito chain's GMO-free menu claims, which it promoted in its advertising campaign called G-M-OVER IT, have enticed customers and boosted the company's stock price but some were unconvinced saying the claims are misleading.
A woman from California filed a lawsuit in the federal court in San Francisco on Friday accusing Chipotle of false advertising. Plaintiff Colleen Gallagher also alleged that the popular food chain violated the Federal Food, Drug and Cosmetic Act because of its false and misleading food labeling as well as for deceiving its customers into spending more for their food.
In a statement, Kaplan Fox & Kilsheimer LLP, the law firm that brought the suit, said that the company targeted healthy-lifestyle and environmentally conscious people who are willing to pay premium prices for foods that are aligned with their ethical eating choices.
Based on surveys, many diners in the U.S. are willing to pay premium price for food that they believe to be more natural and less processed.
The suit claims that the restaurant continues to serve meat products from animals that were fed with GMOs such as corn and soy. Chipotle's sour cream and cheese ingredients were also from dairy farms that feed their animals with GMOs. Soft drinks that the restaurant sells are also made with GMO corn syrup.
Chipotle's website has disclaimers about the GMO content of its food. The company admitted that sourcing meat and dairy that come exclusively from animals that were never given GMOs would be a long-term project and that it may serve products from animals that fed on GMO.
Gallagher, however, said that most diners are not likely to read these disclaimers and only rely on the company's advertising.
"Consumers today are very concerned about what they eat, and restaurants know that consumers place a premium on food that is considered to be healthy or natural," said Laurence King, a lawyer from Kaplan Fox & Kilsheimer. "As a result, Chipotle's advertising in its stores should have accurately informed customers about the source and quality of its ingredients and should not mislead consumers that they are serving food without GMOs when in fact they are."
