Kraft Heinz Fraud Case Study

Decent Essays
ISSUE: Kraft Heinz cheese which labelled “100% Grated Parmesan Cheese” was found to have 3.8% cellulose. Although Bloomberg News story mentioned that between 2 to 4 percent is considered to be an “acceptable level”, consumers still consider this case as a fraud and even filed a class action lawsuit against Kraft Heinz in federal district court on 2016, 27 January.
On this day, a class action lawsuit against Kraft Heinz in the federal Northern District court was filed by an Illinois woman named Yvonne Averhart, claiming violations of the Illinois Consumer Fraud and Deceptive Business Practices Act.
In the Kraft Heinz Company’s Code of Conduct, they promised to their customers and consumers that they will make delicious, safe and high quality
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Michael Mullen can represent Kraft Heinz to calm down the consumer before the result was confirmed by FDA. If the customers were not given with a satisfactory answer, they will not let go of the case too fast, therefore, it is important for the spokesman to response immediately to the public.
Secondly, Kraft Heinz should create a better crisis management. As early as in ancient times, people started identifying and investigating about crisis that might occur and ways to deal with the crisis. Crisis management is the process by which a business or other organization deals with a sudden emergency situation. Kraft Heinz should have improvised its own crisis management while facing with class action lawsuits.
For instance, Kraft Heinz should well-trained the spokesman to response to every type of problems and prevent to let the public waited for too long. Kraft Heinz should have a contingency plan for every crisis that has the probability to happen. They always re-investigate the contingency plan to ensure the plans are the best ways to overcome the crisis for that

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