A recent lawsuit by the state of New York alleges that a major meat company has "greenwashed" consumers by making misleading claims about its environmental impact and profited from dishonest marketing practices.
The suit is led by Letitia James, the New York Attorney General. If you don’t recognize the name, James’ office has been involved in several high-profile lawsuits recently. A notable one is the pending litigation against the NRA for corruption and misappropriation of donation funds.
Let’s take a look at the history of the meat company and the allegations against them now.
JBS: A Multinational Meat Giant
Multinational company JBS and its affiliates are collectively the largest producer of beef products in the world. It grew out of a small, family-run beef business in 1953 to a global leader in the meat industry. The company processes beef, pork, lamb, chicken, and also sells by-products from the processing of these meats. It has numerous brands under its umbrella, some of which are well-known globally.
The U.S. branch of JBS, known as JBS USA, is a significant part of the company's global operations. JBS entered the U.S. market with a strategic acquisition of Swift & Company in 2007. The Illinois-based Swift was a major meat-packing business and one of the key players in the American meat industry for many years. It was closely associated with the Union Stock Yards of Chicago, which was the center of the U.S. meatpacking industry for much of the late 19th and early 20th centuries. By the time it was acquired by JBS, Swift & Company had grown into one of the largest meat-processing companies in the U.S., with a substantial national presence.
Thus, it’s no surprise that JBS USA is now one of the largest meat processors in the country. JBS USA has since expanded its presence through additional acquisitions, including the pork processor Smithfield's beef operations and the chicken producer Pilgrim's Pride. Its facilities are responsible for a large portion of the meat supply in the U.S., and the company serves various markets ranging from retail to food service.
Problematic Practices
But JBS’s U.S. operations have also faced scrutiny and regulatory challenges. Some of these are related to its labor practices, such as workplace safety concerns (particularly during the COVID-19 pandemic), strikes and worker walkouts, and immigration raids that resulted in questions about the company’s hiring practices. They’ve also faced allegations of food safety issues, such as recalls for contamination, sanitation issues, and labeling issues.
JBS has also faced several environmental allegations over the years, particularly concerning deforestation and its impact on climate change. The company has faced allegations that its supply chains are connected to farms involved in illegal deforestation. For example, in 2009 and again in 2017, reports and investigations suggested that JBS was sourcing cattle from areas of the Amazon that were subject to illegal deforestation.
Separately, the company has been scrutinized for its role in greenhouse gas emissions. The livestock sector is a significant contributor to global emissions, and beef has the highest total greenhouse gas emissions of any major food commodity. JBS, due to its size, is a part of this environmental concern. This is exacerbated by deforestation, which eliminates trees and plants that absorb and store carbon dioxide.
The meat giant has also been accused of being involved in so-called "cattle laundering," where cattle are moved from deforested land to other farms to obscure their origin before being sold to slaughterhouses. At a more general level, there have been ongoing concerns about JBS's ability to monitor its supply chain effectively and to ensure that it is not contributing to environmental harm.
The company has been subject to fines and settlements for environmental violations. In 2017, for example, JBS and other major meatpackers reached a settlement with Brazilian authorities, committing to measures to reduce the purchase of cattle from deforested lands in the Amazon.
JBS has made commitments to improve its environmental practices and reduce deforestation in its supply chain. The company has announced plans and initiatives to enhance sustainability and compliance in its operations, including pledges to achieve net-zero greenhouse gas emissions by 2040.
AG Argues There's 'B.S.' In JBS
But the New York Attorney General is calling the company out. The complaint accuses JBS of making “sweeping representations” across its marketing materials about its commitment to reducing its greenhouse gas emissions while having no viable plan to meet its commitment. It points out that the company even admitted that it made its “Net Zero by 2040” commitment without having calculated the vast majority of greenhouse gas emissions from its supply chain. As of 2021, their estimated annual greenhouse gases were more than those of the country of Ireland.
Even if it had developed a plan to make this happen, the AG’s office says it would be unfeasible. This is because “there are no proven agricultural practices to reduce its greenhouse gas emissions to net zero at the JBS Group’s current scale, and offsetting those emissions would be a costly undertaking of an unprecedented degree.” Plus, the company plans to substantially increase its meat production over the coming years.
The National Advertising Division of the Better Business Bureau determined in a recent proceeding involving JBS that the company’s “Net Zero by 2040” marketing claim is “unsubstantiated and misleading to consumers.” They recommended that the JBS Group stop making that claim, but the meat company has continued to make sure claims in its advertising.
The AG’s office points to the fact that as consumers become more aware of the impacts of climate change and sustainability, these facts have become important considerations when purchasing food and beverages in a grocery store or restaurant. The complaint cited a study that consumers were willing to pay up to 30% more for products with “net-zero” greenhouse gas emissions.
NY AG's Beef with JBS
Thus, the AG’s office maintains that the meat company is profiting from its false marketing that speaks to consumer’s environmentally-conscious purchasing decisions – a form of “greenwashing.” The complaint alleged: “The JBS Group has profited from its fraudulent and illegal business activities across New York State.”
The AG is now taking the meat giant to court to stop what it claims are “fraudulent and illegal environmental marketing practices.” It seeks an injunction from the court to stop the company from further violating state consumer protection laws. It also seeks civil penalties for the violations and calls for a third-party audit of the company to make sure it complies with laws in the future. Finally, the AG is calling for the disgorgement of all profits that the company has made through these practices.
Related Resources:
- What Your Food Must Legally Tell You (FindLaw's Law and Daily Life)
- Starting an Eco-Friendly Business (FindLaw's Learn About the Law)
- Food Companies Face Heightened Scrutiny Over Labels (FindLaw's Courtside)
