McDonald's legal cases
Encyclopedia
McDonald's has been involved in a number of lawsuits and other legal cases in the course of the fast food
Fast food
Fast food is the term given to food that can be prepared and served very quickly. While any meal with low preparation time can be considered to be fast food, typically the term refers to food sold in a restaurant or store with preheated or precooked ingredients, and served to the customer in a...

 chain's 70-year history. Many of these have involved trademark
Trademark
A trademark, trade mark, or trade-mark is a distinctive sign or indicator used by an individual, business organization, or other legal entity to identify that the products or services to consumers with which the trademark appears originate from a unique source, and to distinguish its products or...

 issues, but McDonald's has also launched a significant number of defamation suits, including "the biggest corporate PR disaster in history".

McLibel (UK)


In 1990, McDonald's took environmental campaigners Helen Steel and Dave Morris to court after they distributed leaflets entitled "What's Wrong with McDonald's?" on the streets of London. The high-profile trial, which came to be known as the McLibel Case, lasted seven and a half years, the longest in English legal history.



Though a High Court judge eventually ruled in favour of McDonald's, it was something of a Pyrrhic victory
Pyrrhic victory
A Pyrrhic victory is a victory with such a devastating cost to the victor that it carries the implication that another such victory will ultimately cause defeat.-Origin:...

. The extended legal battle was a PR disaster, with every aspect of the company's working practices being scrutinised and the media presenting the case as a David and Goliath battle. Additionally, the damages received were negligible compared to the company's estimated £10 million legal costs because the court ruled in favour of a number of the defendants' claims, including that McDonald's exploited children in its advertising, was anti-trade union and indirectly exploited and caused suffering to animals. McDonald's was awarded £60,000 damages, which was later reduced to £40,000 by the Court of Appeal. Steel and Morris announced they had no intention of ever paying, and the company later confirmed it would not be pursuing the money. Steel and Morris went on to challenge UK libel laws in the European Court of Human Rights
European Court of Human Rights
The European Court of Human Rights in Strasbourg is a supra-national court established by the European Convention on Human Rights and hears complaints that a contracting state has violated the human rights enshrined in the Convention and its protocols. Complaints can be brought by individuals or...

, claiming that the lack of access to legal aid
Legal aid
Legal aid is the provision of assistance to people otherwise unable to afford legal representation and access to the court system. Legal aid is regarded as central in providing access to justice by ensuring equality before the law, the right to counsel and the right to a fair trial.A number of...

 and the heavy burden of proof that lay with them, as the defendants' requirement to prove their claims under UK law was a breach of the right to a fair trial
Right to a fair trial
The right to fair trial is an essential right in all countries respecting the rule of law. A trial in these countries that is deemed unfair will typically be restarted, or its verdict voided....

 and freedom of expression. The court ruled in their favour and the UK Government was forced to introduce legislation
Legislation
Legislation is law which has been promulgated by a legislature or other governing body, or the process of making it...

 to change defamation laws.

MacJoy (Philippines)

In 2004, McDonald's sued Cebu-based fast food restaurant MacJoy for using a very similar trade name. In its defense, MacJoy insisted that it was the first user of the mark under the title "MACJOY & DEVICE" for its business in Cebu City which started in 1987, five years before McDonald's opened its first outlet in the same city. MacJoy stated that the requirement of “actual use” in commerce in the Philippines before one may register a trademark pertains to the territorial jurisdiction on a national scale and is not merely confined to a certain locality or region. It added that "MacJoy" is a term of endearment for the owner's niece whose name is Scarlett Yu Carcel. In response, McDonald's claimed that there was no connection with the name Scarlett Yu Carcel to merit the coinage of the word "MacJoy" and that the only logical conclusion over the name is to help the Cebu restaurant ride high on their (McDonald's) established reputation.

On February 2007, the Philippine Supreme Court upheld the right of McDonald's over its registered and internationally-recognized trademarks. As a result, the owners of MacJoy, the Espina family, was forced to change its trademark into MyJoy, which went into effect with the re-opening of its two branches in Cebu City on August that year.

McCoffee (US)

In 1994, McDonald's successfully forced Elizabeth McCaughey of the San Francisco Bay Area
San Francisco Bay Area
The San Francisco Bay Area, commonly known as the Bay Area, is a populated region that surrounds the San Francisco and San Pablo estuaries in Northern California. The region encompasses metropolitan areas of San Francisco, Oakland, and San Jose, along with smaller urban and rural areas...

 to change the trading name of her coffee shop McCoffee, which had operated under that name for 17 years. "This is the moment I surrendered the little 'c' to corporate America," said Elizabeth McCaughey, who had named it as an adaptation of her surname.

Norman McDonalds' Country Drive-Inn (US)

From the early 1960s to the mid 1980s, Norman McDonald ran a small "Country Drive-Inn" restaurant in Philpot, Kentucky called simply "McDonald's Hamburgers; Country Drive-Inn", which at the time also had a gas station and convenience store
Convenience store
A convenience store, corner store, corner shop, commonly called a bodega in Spanish-speaking areas of the United States, is a small store or shop in a built up area that stocks a range of everyday items such as groceries, toiletries, alcoholic and soft drinks, and may also offer money order and...

. As a play on the real McDonald's, Norman also included a couple of lit "golden arches". McDonald's the restaurant chain forced Norman to remove the arches and add the full Norman McDonald's name to its sign so customers would not be confused into thinking the restaurant was affiliated with the McDonald's restaurant chain. The restaurant is still open to this day (though it no longer has the gas station) and is located in front of the Daviess County Fairgrounds.

McChina Wok Away (UK)

In 2001, McDonald’s lost a nine-year legal action against Frank Yuen, owner of McChina Wok Away, a small chain of Chinese takeaway outlets in London. Justice David Neuberger ruled the McChina name would not cause any confusion among customers and that McDonald's had no right to the prefix Mc.

McMunchies (UK)

In 1996, McDonald's forced Scottish sandwich shop owner Mary Blair of Fenny Stratford
Fenny Stratford
Fenny Stratford is a constituent town of Milton Keynes, ceremonial county of Buckinghamshire, England and in the Civil Parish of Bletchley and Fenny Stratford. Originally an independent town, it was included in the Milton Keynes "designated area" area in 1967...

, Buckinghamshire
Buckinghamshire
Buckinghamshire is a ceremonial and non-metropolitan home county in South East England. The county town is Aylesbury, the largest town in the ceremonial county is Milton Keynes and largest town in the non-metropolitan county is High Wycombe....

 to drop McMunchies as her trading name. Mrs. Blair did not sell burgers
Hamburger
A hamburger is a sandwich consisting of a cooked patty of ground meat usually placed inside a sliced bread roll...

 or chips
French fries
French fries , chips, fries, or French-fried potatoes are strips of deep-fried potato. North Americans tend to refer to any pieces of deep-fried potatoes as fries or French fries, while in the United Kingdom, Australia, Ireland and New Zealand, long, thinly cut slices of deep-fried potatoes are...

. She said she chose the name because she liked the word munchies and wanted the cafe to have a Scottish feel. The cafe's sign reflected this, featuring a Scottish thistle and a St Andrew's flag. But in a statement to Mrs. Blair's solicitors, McDonald's said if someone used the Mc prefix, even unintentionally, they were using something that does not belong to them.\

McDonald's (UK)

McDonald's filed a lawsuit against McDonald's Family Restaurant, located in Grand Cayman. McDonald's lost the case, and in addition, was banned from ever opening a McDonald's location on Grand Cayman. This ruling still stands today.

McAllan (Denmark)

In 1996, McDonald's lost a legal battle at the Danish Supreme Court to force Allan Pedersen, a hotdog vendor, to drop his shop name McAllan. Pedersen had previously visited Scotland on whisky
Whisky
Whisky or whiskey is a type of distilled alcoholic beverage made from fermented grain mash. Different grains are used for different varieties, including barley, malted barley, rye, malted rye, wheat, and corn...

-tasting tours. He named his business after his favorite brand of whisky, MacAllan's, after contacting the distillery to see if they would object. They did not, but McDonald's did. However, the court ruled customers could tell the difference between a one-man vendor and a multi-national chain and ordered McDonald's to pay 40,000 kroner ($6,900) in court costs. The verdict cannot be appealed.

McCurry (Malaysia)

In 2006, McDonald's won a five-year legal battle in Malaysia against a small restaurant named "McCurry". The defendant claimed that McCurry stood for Malaysian Chicken Curry, but a High Court judge ruled that the prefix Mc and the use of colors distinctive of the McDonald's brand could confuse and deceive customers.

In April 2009, however, McCurry won the case after a retrial. Again in September 2009, McDonald’s lost an eight-year trademark battle in a precedent-setting judgment by Malaysia’s highest court. The Federal Court ruled that McDonald’s cannot appeal against another court’s verdict that had allowed McCurry to use "Mc" in its name. The ruling by a three-member panel of the Federal Court ends all legal avenues for McDonald’s to protect its name from what it said was a trademark infringement. “On the basis of unanimous decision, our view is that McDonald’s plea to carry the case forward has no merit," said chief judge Arifin Zakaria. “It is unfortunate that we have to dismiss the application with costs,” he said. McDonald’s will have to pay RM10,000 to McCurry, a popular eatery in Jalan Ipoh
Jalan Ipoh
-List of junctions:...

 on the edge of Kuala Lumpur’s downtown.

McDonald’s lawyers refused to comment, except to say the company will abide by the judgment. A three-member Appeal Court panel had ruled in favour of McCurry Restaurant in April, 2009, when it overturned a 2006 High Court ruling that had upheld McDonald’s contention. Arifin said McDonald’s lawyers were unable to point out faults in the Appeal Court judgment, which had said there was no evidence to show that McCurry was passing off McDonald’s business as its own. The Appeals Court also said McDonald’s cannot claim an exclusive right to the "Mc" prefix in the country.

South African trademark law

Apartheid politics had prevented earlier expansion into South Africa, but as the apartheid regime came to an end in the early 1990s, McDonald's decided to expand there. The company had already recognized South Africa as a potentially significant market and had registered its name as a trademark there in 1968.

Under South African law, trademarks cease to be the property of a company if they are not used for a certain amount of time. McDonald's had renewed the 1968 registration several times, but missed a renewal deadline. The registration expired and McDonald’s discovered two fast food restaurants in South Africa were trading under the name MacDonalds. Moreover, a businessman had applied to register the McDonald’s name.

Multiple lawsuits were filed. The fast food chain was stunned when the court ruled it had lost the rights to its world-famous name in South Africa. However, the company eventually won on appeal.

The real Ronald McDonald (US)

The company waged an unsuccessful 26-year legal action against McDonald's Family Restaurant which was opened by a man legally named Ronald McDonald
Ronald McDonald
Ronald McDonald is a clown character used as the primary mascot of the McDonald's fast-food restaurant chain. In television commercials, the clown inhabits a fantasy world called McDonaldland, and has adventures with his friends Mayor McCheese, the Hamburglar, Grimace, Birdie the Early Bird, and...

 in Fairbury, Illinois
Fairbury, Illinois
Fairbury is a city in Livingston County, Illinois, United States. The population was 3,968 at the 2000 census.-We Hear You America:In November 2010, the fundraising committee for Dominy Memorial Library began encouraging Fairbury citizens to visit the Reader's Digest web site and "Cheer" for the...

 in 1956. Mr. McDonald ultimately continued to use his name on his restaurant, despite objections by the franchise.

H.R. Pufnstuf / McDonaldland

In 1973, Sid and Marty Krofft
Sid and Marty Krofft
Sid Krofft and Marty Krofft , are a sibling team of television producers who were influential in children's television and variety show programs in the USA, particularly throughout the 1970s and early 1980s....

, the creators of H.R. Pufnstuf
H.R. Pufnstuf
H.R. Pufnstuf was a children's television series produced by Sid and Marty Krofft in the United States. It was the first Krofft live-action, life-size puppet program. The seventeen episodes were originally broadcast September 6, 1969 to September 4, 1971...

, successfully sued McDonald's, arguing that the entire McDonaldland
McDonaldland
McDonaldland was a fantasy world used in the marketing for McDonald's restaurants. It was based on the "total concept and feel" of Sid and Marty Krofft's H.R. Pufnstuf television program. McDonaldland was inhabited by Ronald McDonald and other characters...

 premise was essentially a ripoff
Ripoff
A ripoff is a bad financial transaction. Usually it refers to an incident in which a person overpays for something. A ripoff is distinguished from a scam in that a scam involves wrongdoing such as fraud; whether or not something is a ripoff, on the other hand, is a matter of opinion.In a related...

 of their television show. In specific, the Kroffts claimed that the character Mayor McCheese was a direct copy of their character, "H.R. Pufnstuf" (being a mayor himself). McDonald's initially was ordered to pay $50,000. The case was later remanded as to damages, and McDonald's was ordered to pay the Kroffts more than $1 million.

McDonaldland itself, as it was depicted in the commercials, was a magical place where plants, foods, and inanimate objects were living, speaking characters. In addition to being the home to Ronald and the other core characters, McDonaldland boasted "Thick shake volcanoes", anthropomorphized
Anthropomorphism
Anthropomorphism is any attribution of human characteristics to animals, non-living things, phenomena, material states, objects or abstract concepts, such as organizations, governments, spirits or deities. The term was coined in the mid 1700s...

 "Apple pie trees", "The Hamburger Patch" (where McDonald's hamburger
Hamburger
A hamburger is a sandwich consisting of a cooked patty of ground meat usually placed inside a sliced bread roll...

s grew out of the ground like plants), "Filet-O-Fish
Filet-O-Fish
The Filet-O-Fish is a fish sandwich sold by the international fast food chain store McDonald's.-Product description:...

 Lake", and many other fanciful features based around various McDonald's menu items. In the commercials, the various beings are played by puppets or costumed performers, very similar to the popular H.R. Pufnstuf
H.R. Pufnstuf
H.R. Pufnstuf was a children's television series produced by Sid and Marty Krofft in the United States. It was the first Krofft live-action, life-size puppet program. The seventeen episodes were originally broadcast September 6, 1969 to September 4, 1971...

program.

McDonald's had originally hoped the Kroffts would agree to license its characters for commercial promotions. When they declined, McDonaldland was created, purposely based on the H.R. Pufnstuf show in an attempt to duplicate the appeal.

After the lawsuit, the concept of the "magical place" was all but phased out of the commercials, as were many of the original characters. Those that remained would be Ronald, Grimace, The Hamburglar, and the Fry Kids.

McSleep (Quality Inns International)

In 1988, Quality Inns was planning to open a new chain of economy hotels under the name "McSleep." After McDonald's demanded that Quality Inns not use the name because it infringed, the hotel company filed a suit in federal court seeking a declaratory judgment that "McSleep" did not infringe. McDonald's counterclaimed, alleging trademark
Trademark
A trademark, trade mark, or trade-mark is a distinctive sign or indicator used by an individual, business organization, or other legal entity to identify that the products or services to consumers with which the trademark appears originate from a unique source, and to distinguish its products or...

 infringement and unfair competition
Unfair competition
Unfair competition in a sense means that the competitors compete on unequal terms, because favourable or disadvantageous conditions are applied to some competitors but not to others; or that the actions of some competitors actively harm the position of others with respect to their ability to...

. Eventually, McDonald's prevailed. The court's opinion noted that the prefix "Mc" added to a generic word has acquired secondary meaning, so that in the eyes of the public it means McDonalds, and therefore the name "McSleep" would infringe on McDonald's trademarks.

Viz top tips (UK)

In 1996, British adult comic Viz accused McDonald's of plagiarizing the name and format of its longstanding Top Tips feature, in which readers offer sarcastic tips. McDonald's had created an advertising campaign of the same name, which showcased the Top Tips (and then suggested the money-saving alternative - going to McDonald's). Some of the similarities were almost word-for-word:
"Save a fortune on laundry bills. Give your dirty shirts to Oxfam
Oxfam
Oxfam is an international confederation of 15 organizations working in 98 countries worldwide to find lasting solutions to poverty and related injustice around the world. In all Oxfam’s actions, the ultimate goal is to enable people to exercise their rights and manage their own lives...

. They will wash and iron them, and then you can buy them back for 50p." – Viz Top Tip, published May 1989.

"Save a fortune on laundry bills. Give your dirty shirts to a second-hand shop. They will wash and iron them, and then you can buy them back for 50p." – McDonald's advert, 1996


The case was settled out of court for an undisclosed sum, which was donated to the charity appeal Comic Relief. However, many Viz readers believed that the comic had given permission for their use, leading to Top Tips submissions such as: "Geordie magazine editors. Continue paying your mortgage and buying expensive train sets ... by simply licensing the Top Tips concept to a multinational burger corporation."

Beef french fries

Lawsuits were brought against the McDonald's Corporation in the early 1990s for including beef in its French fries despite claims that the fries were vegetarian. In fact, beef flavoring is added to the fries during the production phase. The case revolved around a 1990 McDonald’s press release stating that the company's French fries would be cooked in 100% vegetable oil and a 1993 letter to a customer that claimed their French fries are vegetarian. McDonald's refuted this. The lawsuits ended in 2002 when McDonald's announced it would issue another apology and pay 10 million dollars to vegetarians and religious groups. Subsequent oversight by the courts was required to ensure that the money that was paid by McDonald's: "to use the funds for programs serving the interests of people following vegetarian dietary practices in the broadest sense." There was some controversy in this ruling, as it benefited non-vegetarian groups such as research institutions that research vegetarian diets but do not benefit vegetarians. In 2005, the appeal filed by vegetarians against the list of recipients in this case was denied, and the recipients of the 10 million dollars chosen by McDonald's was upheld.

Further ingredient-related lawsuits have been brought against McDonald's since 2006. McDonald's had included its French fries on its website in a list of gluten-free
Gluten-free diet
A gluten-free diet is a diet that excludes foods containing gluten. Gluten is a protein found in wheat , barley, rye, malts and triticale. It is used as a food additive in the form of a flavoring, stabilizing or thickening agent, often as "dextrin"...

 products; these lawsuits claim children suffered severe intestinal damage as a result of unpublicized changes to McDonald's French fry recipe. McDonald's has provided a more complete ingredient list for its french fries more recently. Over 20 lawsuits have been brought against McDonald's regarding this issue, which the McDonald's Corporation has attempted to consolidate.

Coalition of Immokalee workers (US)

In March 2001, the Coalition of Immokalee Workers
Coalition of Immokalee Workers
The Coalition of Immokalee Workers is a non-profit organization in Immokalee, Florida whose members are "largely Latino, Haitian, and Mayan Indian immigrants working in low-wage jobs throughout the state."Founded in 1993, the group has seen major success on several fronts...

, a group of South Florida farmworkers, began a campaign demanding better wages for the people who pick the tomatoes used by McDonald's and other fast food companies. McDonald's was the second target after the group succeeded against Taco Bell
Taco Bell
Taco Bell is an American chain of fast-food restaurants based in Irvine, California. A subsidiary of Yum! Brands, Inc., which serves American-adapted Mexican food. Taco Bell serves tacos, burritos, quesadillas, nachos, other specialty items, and a variety of "Value Menu" items...

.

McDonald's Corporation has claimed that their SAFE (Socially Accountable Farm Employer) program is equal to or superior to the agreement between the CIW and Taco Bell. SAFE was initially represented, in November 2005, by CBR Public Relations Firm. According to their website, CBR-PR has "in-depth" experience handling "activist response management." SAFE, unlike the Taco Bell agreement, does not include a wage increase, worker participation, worker support, or basic buying transparency. The program is run by the Florida Fruit and Beverage Association and the Redlands Christian Migrant Association, a childcare provider with no experience in labor issues. As the Florida Fruit and Vegetable Association represents farmers who have an interest in reducing costs, often at the expense of farm workers, this represents a conflict of interests. Under SAFE, farm workers themselves continue to be excluded from monitoring the conditions under which they work.

According to the Robert F. Kennedy Center for Human Rights, "By partnering with SAFE and embracing its weak expectations — which do not include even such fundamental labor standards such as the right to overtime pay and freedom of association — McDonald's is setting the bar even lower for its American agricultural producers than it does for its suppliers in communist China."

Fries advertisement (UK)

In 2003, a ruling by the UK Advertising Standards Authority
Advertising Standards Authority (United Kingdom)
The Advertising Standards Authority is the self-regulatory organisation of the advertising industry in the United Kingdom. The ASA is a non-statutory organisation and so cannot interpret or enforce legislation. However, its code of advertising practice broadly reflects legislation in many instances...

 determined that the corporation had acted in breach of the codes of practice in describing how its french fries were prepared. A McDonald's print ad stated that "after selecting certain potatoes", "we peel them, slice them, fry them and that's it." It showed a picture of a potato in a McDonald's fries box. In fact, the product was sliced, pre-fried, sometimes had dextrose added, was then frozen, shipped, and re-fried and then had salt added.

"McMatch and Win Monopoly" Promotion (Australia)

In 2001, 34 claimants (representing some 7,000 claimants) failed in a class action against McDonald's
McDonald's
McDonald's Corporation is the world's largest chain of hamburger fast food restaurants, serving around 64 million customers daily in 119 countries. Headquartered in the United States, the company began in 1940 as a barbecue restaurant operated by the eponymous Richard and Maurice McDonald; in 1948...

 for false and misleading conduct arising from the "McMatch & Win Monopoly" promotion before Justice John Dowsett of the Federal Court of Australia
Federal Court of Australia
The Federal Court of Australia is an Australian superior court of record which has jurisdiction to deal with most civil disputes governed by federal law , along with some summary criminal matters. Cases are heard at first instance by single Judges...

. The claimants had attempted to claim prizes from the 1999 promotion using game tokens from the 1998 promotion, arguing unsuccessfully that that remaining 1998 tokens may have been distributed accidentally by McDonald's in 1999.

Health and safety

Also known as the "McDonald's coffee case", Liebeck v. McDonald's is a well-known product liability
Product liability
Product liability is the area of law in which manufacturers, distributors, suppliers, retailers, and others who make products available to the public are held responsible for the injuries those products cause...

 lawsuit
Lawsuit
A lawsuit or "suit in law" is a civil action brought in a court of law in which a plaintiff, a party who claims to have incurred loss as a result of a defendant's actions, demands a legal or equitable remedy. The defendant is required to respond to the plaintiff's complaint...

 that became a flash point in the debate in the U.S. over tort reform after a jury awarded $2.9 million to Stella Liabeck, a 79-year-old woman from Albuquerque, New Mexico, who sued McDonald's after she suffered third-degree burns from hot coffee that she spilled on herself at one of the company's drive-thrus in 1992. The trial judge reduced
Remittitur
A remittitur is a ruling by a judge lowering the amount of damages granted by a jury in a civil case. Usually, this is because the amount awarded exceeded the amount demanded...

 the total award to $640,000, and the parties settled for a confidential amount before an appeal was decided. The case entered popular understanding as an example of frivolous litigation
Frivolous litigation
In law, frivolous litigation is the practice of starting or carrying on law suits that, due to their lack of legal merit, have little to no chance of being won. The term does not include cases that may be lost due to other matters not related to legal merit...

; ABC News
ABC News
ABC News is the news gathering and broadcasting division of American broadcast television network ABC, a subsidiary of The Walt Disney Company...

 calls the case "the poster child of excessive lawsuits." Trial-lawyer groups such as the Association of Trial Lawyers of America
Association of Trial Lawyers of America
The American Association for Justice , formerly the Association of Trial Lawyers of America is the leading organization for lawyers representing plaintiffs in the United States...

 and other opponents of tort reform
Tort reform
Tort reform refers to proposed changes in common law civil justice systems that would reduce tort litigation or damages. Tort actions are civil common law claims first created in the English commonwealth system as a non-legislative means for compensating wrongs and harm done by one party to...

sometimes argue that the suit was justified because of the extent of Liebeck's injuries.

External links

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