The Continuing Cases Against Big Chocolate | #PSC 183
OVERVIEW: Episode 183 features an interview with Terry Collingsworth of International Rights Advocates, updating the (legal) cases against Big Chocolate in the US. Along the way, we’ll take a look at their history, too. [ Updated ]
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Episode 183 Overview
In this episode, Terry Collingsworth, the Executive Director of International Rights Advocates, will join me to discuss the history of legal actions in the US against Big Chocolate as well as some recent updates to cases that may lead to positive resolutions (eventually).
The TL;DR Intro/Overview
A D.C. Superior Court judge has allowed a consumer protection lawsuit against Mars, Cargill, and (more narrowly) Mondelēz to proceed, alleging deceptive marketing about child labor conditions in their W African cocoa supply chains. The case is brought by International Rights Advocates under the D.C. Consumer Protection Procedures Act.
Key rulings: Claims against Mars and Cargill move forward based on allegedly misleading “responsible cocoa,” traceability, and monitoring claims.
Claims against Mondelēz are partially dismissed where Cadbury (which is owned by Mondelēz) products are made under Hershey license in the U.S. The court finds jurisdiction in D.C. because the companies sell and allegedly misled consumers there, and rejects a First Amendment defense, holding that commercial sustainability claims are regulable when misleading.
The decision contrasts with a prior federal appellate ruling that dismissed former Malian child workers’ claims for failure to tie forced labor to specific farms.
Overall, the ruling signals that aspirational ESG and “ethical sourcing” claims in cocoa can create legal exposure when reality diverges from marketing.
Aaron Halegua
Knock-on Effects?
- For anyone in specialty/craft chocolate, this is a warning and, potentially, an opening. By implication:
- Any brand that leans heavily on “ethical,” “direct trade,” “child‑labor free,” or “we ensure farmers are paid fairly” language is moving into territory where courts are becoming more willing to scrutinize claims.
- At the same time, brands with genuinely documented, narrow, and transparent supply chains may find that the credibility gap with big‑brand ESG PR is finally getting legal recognition.
Think of a ruling for the plaintiffs that survives the inevitable appeals as drawing a bright line between two broad classes of claims:
- Descriptive, bounded, evidence‑backed claims → relatively safe(r).
- Sweeping ethical assurances about complex, high‑risk origins → exposure to risk similar to claims Mars/Cargill/Modelēz are being sued over.
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