Unilever sues Hamption Creek over false advertising
This recent article in the Financial Post explains how house-hold product giant Unilever is suing start-up company Hampton Creek for its product “Just Mayo.” Unilever contends that its competitor’s product (which doesn’t contain eggs) is violating federal trademark laws since Just Mayo’s label features a white egg cracked by a pea shoot. Furthermore, Unilever argues that Just Mayo is denting sales of its popular mayonnaise products, known as Hellmann’s as the new product has won distribution in giant retail and grocery chains like Target and WalMart. Unilever also wants Hampton Creek to pay three times its profit in damages plus the legal fees. Additionally, Unilever is asking the court to require Hampton Creek to stop using the egg on its label and stop claiming that Just Mayo is superior to Hellmann’s.
WHY I THINK THIS IS RIDICULOUS:
In my opinion, Unilever is bullying smaller companies who are actively trying to innovate and shift the face of food production. While there is an FDA standard on what mayonnaise should entail, those guidelines were set in 1957 (as stated in the article) and the reality is that in a tech-driven economy, innovation and creativity should be rewarded. Just Mayo is rising up to be a main competitor of Hellmann’s and it is that rivalry that allows for the stimulation of innovation and creation of better products. Competition benefits consumers as it lowers costs and allows for new products. Unilever should address this reality instead of accusing Hampton Creek of ridiculous clauses.