Tyson barred from making antibiotic-free claim

LOS ANGELES, April 22 (Reuters) - Poultry giant Tyson Foods Inc (TSN.N) may not advertise its chickens as "raised without antibiotics" because they are fed a type of antibiotic, a federal judge in Baltimore ruled in a preliminary injunction on Tuesday.

In seeking the injunction, Tyson competitors, Sanderson Farms Inc and Perdue Farms Inc, argued that the ads are misleading and caused them to lose business among consumers who falsely assume that Tyson does not use an antibiotic feed additive that is used by all three companies.

All three companies use feed containing ionophores -- a food additive classified by the U.S. Department of Agriculture as an antibiotic. Ionophores are believed to pose little or no risk to humans, leading Tyson to claim that its poultry was "raised without antibiotics that impact antibiotic resistance in humans."

In granting the preliminary injunction, U.S. District Judge Richard Bennett found that a survey commissioned by Perdue and Sanderson showed that "a significant portion" of consumers did not understand Tyson's qualified use of "raised without antibiotics."

The order takes effect on May 1, but Tyson said it would seek a stay of Bennett's ruling at the Fourth U.S. Circuit Court of Appeal in Richmond, Virginia.

The ruling does not affect the USDA-approved product label used on Tyson's fresh chicken products but will force changes in its point-of-sale and other advertising during the crucial summer grilling season, the company said.

"We strongly disagree with this decision and will appeal since we firmly believe we have acted responsibly in the way we have labeled and marketed our products, Dave Hogberg, Tyson's senior vice president of consumer products, said in a statement.

Springdale, Arkansas-based Tyson obtained USDA approval to market the chicken under a "Raised Without Antibiotics" label in 2007.

The government later said it had mistakenly approved the original label since the company uses ionophores as an ingredient in its chicken feed.

The company agreed in December to revise the label to "Raised without antibiotics that impact antibiotic resistance in humans".

A coalition of consumers and poultry companies, including Perdue, Sanderson, Foster Farms, and Gold 'n Plump had objected to Tyson's "Raised Without Antibiotics" campaign and had pressured the USDA to "adopt a consistent classification of ionophores" on poultry labeling. (Reporting by Gina Keating; Editing by Mary Milliken)