Tenth Circuit Says Federal Law Preempts Suits Over “Product of the U.S.A.” Beef Labels

The U.S. Court of Appeals for the Tenth Circuit ruled on March 11, 2022 that federal law preempts state-law suits challenging “Product of the U.S.A.” labels on beef from Tyson Foods, Cargill Meat Solutions, JBS USA and National Beef Packing.

Consumer Robin Thornton and New Mexico rancher Michael Lucero said the labels were misleading because the beef came from cattle imported live, then slaughtered and processed in the USA.

What the court held

• The USDA’s Food Safety and Inspection Service had preapproved the labels.
• The Federal Meat Inspection Act bars states from adding labeling requirements “in addition to, or different than” federal rules.
• The majority, in an opinion by Judge Nancy Moritz, upheld the dismissal and found the false-advertising claims were not adequately pleaded.
• The majority said it offered no view on whether the USDA’s reading of the label is correct.

Senior Judge Carlos Lucero dissented. He said the majority’s view lets beef from cattle raised abroad be called a USA product just because it was packaged here.

FAQ

Which companies were sued?

Tyson Foods, Cargill Meat Solutions, JBS USA and National Beef Packing.

Why were the claims dismissed?

The court said the Federal Meat Inspection Act preempts state claims against USDA-approved labels.

Was the decision unanimous?

No. Senior Judge Carlos Lucero dissented.