Boris v. Wal-Mart Stores, Inc.
2014 U.S. Dist. LEXIS 56115
C.D. Cal.2014Background
- Plaintiffs (Boris, Cooper, Girard, Newsome) filed a putative class action alleging Wal‑Mart deceptively marketed Equate Migraine by charging 2–3× more and using red packaging versus Equate Extra Strength (green), though both contain identical active ingredients and doses.
- Claims asserted: California FAL, UCL (unlawful and unfair), CLRA; New Jersey Consumer Fraud Act; New York GBL § 349; unjust enrichment/restitution; and breach of the covenant of good faith and fair dealing.
- One plaintiff (Girard) alleges online reliance: Wal‑Mart’s website listed three active ingredients for Equate Migraine but only one for Equate ES.
- Wal‑Mart moved to dismiss for failure to state a claim, Rule 9(b), preemption, and primary jurisdiction; the court resolved dismissal on Rule 12(b)(6) grounds.
- The court found price differential and package color are not statements or representations; website allegation was pleaded as reinforcement rather than an independent basis and failed Rule 9(b) as to timing and reliance.
- Result: most claims dismissed with prejudice; limited leave to amend only for website‑based FAL/CLRA/UCL claims by the online‑purchaser subclass within 21 days.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Equate Migraine’s higher price and red packaging constitute a deceptive "statement or representation" under FAL/CLRA/UCL | Price and red packaging misled reasonable consumers into believing Equate Migraine was more effective | Price is simply a merchant’s offering and color is non‑verbal/symbolic, not a statement about product efficacy | Dismissed: price and color are not actionable representations; FAL/CLRA/UCL claims on that basis dismissed with prejudice |
| Whether UCL "unfair" prong is satisfied by pricing/packaging | Such conduct is immoral, oppressive and injurious to consumers | No tether to any specific constitutional, statutory, or regulatory provision; courts cannot judicially police pricing or packaging color | Dismissed: unfair claim fails for lack of statutory/regulatory predicate and nonjusticiability of price regulation |
| Applicability of NJCFA and NY GBL to price/packaging claims | State consumer statutes prohibit deceptive practices and plaintiffs suffered ascertainable loss | Neither price nor package color is a misrepresentation or omission under these statutes | Dismissed: NJCFA and NY GBL claims based on price/color fail |
| Whether website allegation supports claims and satisfies Rule 9(b); adequacy of Online Purchaser class | Website misrepresented Equate ES active ingredients and induced online purchases (Girard) | Website claim was pleaded only as a bolster to price/color theory; Girard did not plead when he viewed the site or that he relied on specific webpages; class definition doesn’t limit to online purchasers | Dismissed without prejudice as pleaded: website‑based FAL/CLRA/UCL claims may be repled; Girard’s allegations fail Rule 9(b); Online Purchaser class definition inadequate |
| Breach of covenant and unjust enrichment remedies based on alleged deception | Wal‑Mart frustrated plaintiffs’ expectations and was unjustly enriched by overpricing | Plaintiffs merely allege they paid too much; no contract benefit was thwarted; no actionable predicate misconduct remains | Dismissed with prejudice: covenant claim and unjust enrichment fail because deception claims (predicate) were dismissed |
Key Cases Cited
- Bell Atlantic Corp. v. Twombly, 550 U.S. 544 (plausibility standard for Rule 8)
- Ashcroft v. Iqbal, 556 U.S. 662 (distinguishing factual allegations from legal conclusions)
- Cel‑Tech Commc’ns, Inc. v. Los Angeles Cellular Tel. Co., 20 Cal.4th 163 (UCL unfair prong must be tethered to specific policy or statute)
- Kasky v. Nike, Inc., 27 Cal.4th 939 (scope of false advertising law and statements to the public)
- Kearns v. Ford Motor Co., 567 F.3d 1120 (Rule 9(b) applies to consumer claims that sound in fraud)
- Wal‑Mart Stores, Inc. v. Samara Bros., Inc., 529 U.S. 205 (product color/design not inherently distinctive for trade dress purposes)
