Lawsuits Allege Inaccurate Nutritional Info on Menus

The threat of such class-action lawsuits could deter restaurants from adding nutritional information on their menus.

By David Farkas, Senior Editor -- Chain Leader, 6/26/2008 4:36:00 PM

A class-action lawsuit filed in June alleges that Applebee's engages in unfair and deceptive business practices by misrepresenting the nutritional information on its Weight Watchers menu.

"It probably isn't a rogue cook adding too much cheese to the dish," offers Seattle attorney David E. Breskin, who in early June filed a class-action lawsuit in Los Angeles federal court on behalf of Applebee's customer Anne Paskett.

Breskin tells Chain Leader such practices were likely "endemic" to Applebee's Weight Watchers menu, which the casual-dining chain says adheres to guidelines set forth by the popular diet company. The chain launched the Weight Watcher's menu in 2004 with 10 items.

Nutritional Claims Court

The complaint alleges that Applebee's engages in unfair and deceptive business practices by misrepresenting the nutritional information on its Weight Watchers menu. In so doing, the chain violated three California statutes protecting consumers, according to the complaint. Applebee's is a subsidiary of DineEquity, formerly IHOP Corp., which is headquartered Los Angeles County.

Paskett, a Seattle resident, also in early June filed a class-action complaint in Texas against Dallas-based Brinker International, alleging nutritional claims made for items on menus at Chili's Grill & Bar, On the Border Mexican Grill & Cantina and Romano's Macaroni Grill are also inaccurate.

Both class-action complaints ask for damages in excess of $5 million.

Chris Muller, a restaurant management professor at the University of Central Florida's Rosen College of Hospitality Management, likens such litigation to dramshop laws and smoking bans. "Society wants the suppliers of consumables to be responsible for what they sell us," he says. "[These complaints] are inevitable."

What's in Common?

So far, neither company has answered the complaint, required for the court to grant so-called "class certification." Breskin expected the court to decide whether to certify the suits by early July.

Product liability expert John E. Hall of Eckert Seamans, a Pittsburgh law firm, expects both restaurant companies to fight certification. "There is a huge issue as to whether or not people have commonality in terms of damages," he says. "I would think each person would have a different interest in terms of damages."

Evidence supporting Paskett's claims appears to rest on a Scripps Television Station investigation this year that revealed the nutritional content of dishes at various chains, including those mentioned in the suit, varied significantly from what menus stated.

An independent laboratory tested the dishes, according to a Scripps Howard News Service article. "Dishes targeted to health-conscious consumers at popular chains like Chili's, Taco Bell and Applebee's contained as much as twice the calories and eight times the grams of fat than the restaurants claimed in their published nutrition information," the article said.

Breskin says the information in the report prompted Paskett to file the suits. Asked whether further testing of the chains' dishes would help, Breskin said, "It would be helpful, but I am not sure it is critical."

DineEquity spokesman Patrick Lenow says, "We are very comfortable with the nutritional information we provide. We don't comment on 'opinion' litigation."

Brinker International did not return a call seeking comment.

Long-Term Effect

One veteran executive believes the threat of class-actions suits like Paskett's will make restaurants afraid to publish nutritional information voluntarily. "They will be more reluctant to provide exact numbers because they are so hard to hit," says former Darden Restaurants COO Dick Rivera, now a partner in Rubicon Enterprises, operator of five Atlanta restaurants.

Mike Donahue, a spokesman for the National Restaurant Association, agrees. "A large and growing number of restaurants already provide nutrition information," he says. "But lawsuits like these clearly could dissuade some and cause others to reconsider."