Category: Consumer Fraud and Protection

Vermont Federal Court Orders Ben & Jerry’s “Happy Cows” Lawsuit Out to Pasture

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A Vermont federal court dismissed a lawsuit alleging consumer fraud, breach of warranty, and unjust enrichment against Ben & Jerry’s because representations about its dairy from “happy cows” did not run afoul of the law. But the court granted the plaintiff twenty days to amend.

In Ehlers v. Ben & Jerry’s Homemade Inc., et al., Civil Action No. 2:19-cv-00194, a Vermont plaintiff sued defendants Conopco, Inc. d/b/a Unilever United States (Unilever) and its subsidiary Ben & Jerry’s Homemade Inc. (Ben & Jerry’s) on behalf of a proposed class seeking compensatory damages and injunctive relief. The plaintiff alleged that statements on Ben & Jerry’s ice cream cartons and website were materially misleading in violation of the Vermont Consumer Protection Act (VCPA) and constituted breach of an express warranty. The plaintiff also asserted a claim for unjust enrichment.

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A Warranty Claim by Any Other Name Remains a Warranty Claim – Illinois Federal Court Dismisses Claims Against Aloe Vera Retailer

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An Illinois federal court recently reinforced the distinction between a properly plead consumer fraud claim and an express warranty claim merely masquerading as a consumer fraud claim, while granting a defendant’s motion to dismiss.

In Parrott v. Family Dollar, Inc.the plaintiff alleged breach of warranty and consumer fraud claims against Family Dollar, Inc. regarding its aloe vera product. The Hon. Jorge L. Alonso of the Northern District of Illinois unmasked plaintiff’s consumer fraud claim as nothing more than a breach of warranty claim by another name, and subsequently granted defendant’s motion to dismiss.

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Ingredient Lists Still Matter: California Federal Court Dismisses White Baking Chips Lawsuit

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A putative class action complaint alleging that a product labeled “Premium Baking Chips Classic White Chips” deceptively implied the product contained white chocolate has been dismissed after a federal court held that no reasonable consumer would be deceived because the product nowhere stated “chocolate” or “cocoa,” and the ingredient list plainly disclosed the product did not contain those ingredients. The decision reflects a growing trend of district courts limiting the Ninth Circuit’s Williams v. Gerber rule that a reasonable consumer need not examine the ingredient list.

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Natural Cosmetics: Products Without a Clear Definition

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Consumer demand for natural cosmetics continues to grow. A Bloomberg News article projected the natural cosmetics market to grow over 5% annually and to be worth $48.04 billion by 2025. The article noted that high demand for natural products among millennials is “driving the growth,” which means the trend is likely to continue. Despite the increasing market share, the federal agencies that regulate the sale and advertising of cosmetics, the Food & Drug Administration (FDA) and the Federal Trade Commission (FTC), still have not formally defined the term “natural” as applied to cosmetics.

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A Failure of Leakage Linkage: The District of New Jersey Sinks a Proposed Class Action under Tennessee and California Laws over Leaky Water Heaters

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A New Jersey federal judge recently applied Tennessee and California law in dismissing a proposed class action concerning allegedly leaky water heater sensors/valves (valves) made by Honeywell International Inc. The decision provides a point-by-point explanation of how superficial allegations of product defect fail to satisfy federal pleading standards under the substantive product liability laws of both states.

In Butera v. Honeywell International, Inc., Civil Action No. 18-13417, the named plaintiffs were a resident of Tennessee and a resident of California whose water heaters began leaking six years after purchase. The plaintiffs filed a putative class action claiming that Honeywell’s hot water heater valves were defective. The plaintiffs alleged that the valves featured a plastic (thermowell) casing that “prematurely erodes” and deteriorates, allowing water leakage. They asserted claims under Tennessee’s Products Liability Act (TPLA) and causes of action under California common law, the California Commercial Code, and California’s Unfair Competition Law statute (UCL), sounding in breach of express and implied warranty, negligence, strict product liability and consumer fraud. Honeywell moved to dismiss for failure to state a claim. The court applied the laws of each plaintiff’s home state to their respective claims.

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There Are Two Sides to Every Product Label

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As we have reported in our previous blog posts (“Beware the “Influencer”” and “The Price of Natural Cosmetics”), courts continue to wrestle with challenges to manufacturers’ claims that their products are “all natural.” Recently, California’s Central District Court added to the growing volume of decisions in this space. In Robinson v. Unilever United States, Inc., 2019 WL 2067941 (C.D. Cal. Mar. 25, 2019), the Court was tasked with resolving “100% natural” claims and “made with 100% natural” ingredients claims. The Robinson decision provides some insight into what types of “natural” claims may be permitted by trial courts and how they are reigning in consumer class actions.

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