Vermont may use ‘bounty hunters’ to enforce GMO labeling law

Private litigants, or so-called ‘bounty hunters’, may start targeting food manufacturers over alleged violations of Vermont’s new GMO labeling law from day one (July 1), lawyers at Hogan Lovells have warned.

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. . .[F]ood manufacturers should be aware that private litigants may also enforce Act 120. . .and would likely exercise less restraint than the state AG in the first few months, predicted [Martin Hahn, a partner in Hogan Lovells’ Washington DC office].

“There is a bounty hunter provision that allows individuals in the state of Vermont, lawyers for example… to enforce the law. We are concerned that bounty hunters will take action as soon as Act 120 goes into effect.

“Private individuals are . . . entitled to receive at least three times the [ticket price of the] product they purchase and retrieve their attorney’s fees, which could amount to a significant amount of money. . . .we’re talking about [potential awards amounting to] dollar sales of your product across the state of Vermont times three, and all the legal fees. And at a minimum, legal fees for one of these actions would likely be $250,000 to $1m.”

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Veronica Colas, senior associate at Hogan Lovells, meanwhile, noted that the law also applied to products that may not have been intended for Vermont, but landed up for sale there nevertheless.

For example if a product is diverted into Vermont by a distributor. . .that manufacturer is still liable, she said.