T&R CHEMICALS SUES COMPETITORS FOR FALSE ADVERTISING AND UNFAIR COMPETITION
Lawsuit Charges Caragum and Farbest with Deceiving Customers and Providing Fraudulent Beverage Additives
CLINT, Texas, May 31, 2023 /PRNewswire/ -- T&R Chemicals, Inc., sole U.S. distributor for a leading global producer of wood-rosin-based beverage additives, has filed a complaint in California court charging competitors Caragum International (Marseille, France) and Farbest Brands (New Jersey) with false advertising and unfair competition in knowingly and intentionally labeling, selling and distributing their glycerol-ester beverage additive. T&R's lawsuit alleges that Caragum and Farbest fraudulently claim that the wood-rosin glycerol ester they sell in the United States is in fact a different product that is less expensive and not approved for use in most countries in the world.
"By making false and deceptive claims about the product they are selling, Caragum and Farbest are deceiving their customers, creating an unfair playing field and destroying the integrity of the rosin industry," said Vasilios Fotopoulos, president of T&R. "Customers should get what they pay for, and T&R must have a fair opportunity to compete and provide high-quality, genuine wood-rosin glycerol ester to its customers."
T&R is the sole U.S. distributor for Resinas Sintéticas (Morelia, Mexico), which produces two types of glycerol esters of rosin that help emulsify flavoring oils in beverages: glycerol ester of wood rosin (GEWR) and glycerol ester of gum rosin (GEGR). The two products provide the same functionality and are equally safe, but they are produced using different methods. They are distinct products in the marketplace, with different pricing and different national and international regulatory approvals. The wood rosin in GEWR is capital-intensive and more expensive to produce. GEWR is more widely approved for use, including in the U.S. and in the European Union and by WHO's CODEX/JECFA. The gum rosin in GEGR is more abundant worldwide, and less expensive to produce. It is approved for use in the United States, but not in Europe.
T&R's lawsuit charges Caragum and Farbest with selling GEGR that is intentionally mislabeled as GEWR, which allows them to sell their mislabeled product for less than T&R can profitably sell its genuine GEWR. The complaint says this false and deceptive practice has resulted in windfall profits for Caragum and Farbest, and lost sales of more than $4.5 million for T&R since 2020.
T&R's charges are based on knowledge of wood rosin production and global manufacturing practices, Caragum's own videos which depict and outline GEGR production while claiming to be GEWR production, customer descriptions of the Caragum-Farbest product and other investigative measures.
The complaint further states that T&R seeks to prevent Caragum and Farbest from continuing the fraudulent practice and seeks damages based on lost revenues from prospective customers who purchased the fraudulent product based on the false and misleading advertising and misrepresentations.
"It is wrong and unfair for Caragum and Farbest to deliberately mislead customers. They must be stopped and penalized for their ongoing fraudulent business practices," Fotopoulos said.
About T&R Chemicals, Inc.
Established in Texas in 1973, T&R Chemicals Inc. is one of the world's leading producers of pine oil while also distributing the rosin derivatives of Resinas Sintéticas, including glycerol ester of wood rosin and glycerol ester of gum rosin. These glycerol esters are unique in their ability to provide emulsion stability and are commonly used as weighting agents in the flavor and beverage industries.
Contact: Claire Parker
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SOURCE T&R Chemicals
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