As It Happens6:30Burger King must defend its whopper size in court. Other fast food chains may follow
Anthony J. Russo says his firm’s lawsuits against four fast food giants is about a lot more than how much beef is in a burger.
The U.S. lawyer is working on three class-action lawsuits targeting four major brands — Burger King, Taco Bell, McDonald’s and Wendy’s. Each suit was filed on behalf of dissatisfied customers who allege the companies make their menu items look bigger and better in marketing than they really are.
“Today, it starts with the possibility of a fast food item that’s, you know, a few dollars in cost. Tomorrow, it’s an automobile or a vehicle or a home,” Russo, president of the Russo Law Firm, told As It Happens guest host Katie Simpson.
“If you don’t put some kind of stop measures in here, there’s no limit to what is going to be, you know, the truthfulness in the advertising. And that’s really the basis of our lawsuit.”
On Friday, he secured a small victory when the U.S. District Judge Roy Altman in Miami rejected Burger King’s bid to dismiss the suit.
Already, Russo’s firm has cited Altman’s opinion in its New York case against McDonald’s and Wendy’s, to justify letting that suit continue.
‘The plaintiffs’ claims are false’: Burger King
Burger King — a unit of Restaurant Brands International — denies the lawsuit’s allegations.
“The plaintiffs’ claims are false,” the company said in an emailed statement to CBC. “The flame-grilled beef patties portrayed in our advertising are the same patties used in the millions of Whopper sandwiches we serve to guests nationwide.”
The burger chain tried to have the suit tossed, arguing it’s not required to deliver burgers that look “exactly like the picture.”
Altman dismissed the lawsuit’s claims based on TV and online ads, saying he found none in which Burger King promised a burger “size,” or patty weight and failed to deliver it. But he said the company must defend against a claim that its depiction of Whoppers on in-store menu boards mislead reasonable customers, amounting to a breach of contract.
In his ruling, the judge said it was up to jurors to “tell us what reasonable people think.”
Neither McDonald’s, Wendy’s nor Taco Bell responded to requests for comment from CBC.
Russo doesn’t necessarily disagree with Burger King’s statement.
“They may be the same patties, but … what you see is not what you get,” he said. “It’s our opinion and our allegations that the differences are very, very clear to the naked eye.”
The lawsuits include images of marketed menu items and compare them to the real deal to see if they pass what Russo calls “the eye test.”
The images on menus and ads, he says, portray “a big, thick, juicy burger, flame broiled, dripping with, you know, juiciness,” and topped with “bright green, fresh, crisp lettuce” and ripe tomato protruding from a “glistening bun.”
“In reality, what you see when you unwrap it … would be a very, very thin and greyish looking dried-out burger with maybe some wilted lettuce, you know, popping through on the sides,” he said.
The lawsuits — each of which seeks at least $5 million US in damages — claim the difference comes down to deceptive practices by food stylists, people who design, prepare and style food for photography or videos.
One Wendy’s food stylist quoted in that lawsuit said she would use undercooked beef in order to make the patties appear larger than they are when served.
The allegations have not been proven in court.
Could pave the way for future lawsuits
New York lawyer Spencer Sheehan, who is not involved in the cases, called Altman’s ruling “a positive development” that could pave the way for other lawyers to bring similar lawsuits.
“As long as, you know, one judge somewhere has said that a course of action or a theory is OK, basically … that’s open season in a way,” he told CBC.
TORONTO – Cineplex Inc. reported a loss in its latest quarter compared with a profit a year ago as it was hit by a fine for deceptive marketing practices imposed by the Competition Tribunal.
The movie theatre company says it lost $24.7 million or 39 cents per diluted share for the quarter ended Sept. 30 compared with a profit of $29.7 million or 40 cents per diluted share a year earlier.
The results in the most recent quarter included a $39.2-million provision related to the Competition Tribunal decision, which Cineplex is appealing.
The Competition Bureau accused the company of misleading theatregoers by not immediately presenting them with the full price of a movie ticket when they purchased seats online, a view the company has rejected.
Revenue for the quarter totalled $395.6 million, down from $414.5 million in the same quarter last year, while theatre attendance totalled 13.3 million for the quarter compared with nearly 15.7 million a year earlier.
Box office revenue per patron in the quarter climbed to $13.19 compared with $12 in the same quarter last year, while concession revenue per patron amounted to $9.85, up from $8.44 a year ago.
This report by The Canadian Press was first published Nov. 6, 2024.
TORONTO – Restaurant Brands International Inc. reported net income of US$357 million for its third quarter, down from US$364 million in the same quarter last year.
The company, which keeps its books in U.S. dollars, says its profit amounted to 79 cents US per diluted share for the quarter ended Sept. 30 compared with 79 cents US per diluted share a year earlier.
Revenue for the parent company of Tim Hortons, Burger King, Popeyes and Firehouse Subs, totalled US$2.29 billion, up from US$1.84 billion in the same quarter last year.
Consolidated comparable sales were up 0.3 per cent.
On an adjusted basis, Restaurant Brands says it earned 93 cents US per diluted share in its latest quarter, up from an adjusted profit of 90 cents US per diluted share a year earlier.
The average analyst estimate had been for a profit of 95 cents US per share, according to LSEG Data & Analytics.
This report by The Canadian Press was first published Nov. 5, 2024.
ST. JOHN’S, N.L. – Fortis Inc. reported a third-quarter profit of $420 million, up from $394 million in the same quarter last year.
The electric and gas utility says the profit amounted to 85 cents per share for the quarter ended Sept. 30, up from 81 cents per share a year earlier.
Fortis says the increase was driven by rate base growth across its utilities, and strong earnings in Arizona largely reflecting new customer rates at Tucson Electric Power.
Revenue in the quarter totalled $2.77 billion, up from $2.72 billion in the same quarter last year.
On an adjusted basis, Fortis says it earned 85 cents per share in its latest quarter, up from an adjusted profit of 84 cents per share in the third quarter of 2023.
The average analyst estimate had been for a profit of 82 cents per share, according to LSEG Data & Analytics.
This report by The Canadian Press was first published Nov. 5, 2024.