3:24-cv-03558
N.D. Cal.Jan 31, 2025Background
- Amanda Broomes filed a putative class action against FullBeauty Brands Operations, LLC, alleging deceptive pricing practices on its website, Eloquii.com.
- Broomes claims FullBeauty perpetually advertises site-wide “sales” using false strikethrough prices that do not accurately reflect former or prevailing market prices.
- The complaint asserts claims under California’s UCL (Unfair Competition Law), FAL (False Advertising Law), CLRA (Consumer Legal Remedies Act), fraud, negligent misrepresentation, and unjust enrichment/quasi-contract.
- FullBeauty Brands moved to dismiss the complaint for failure to state a claim, challenging the sufficiency and specificity of Broomes’s allegations.
- The court granted in part and denied in part FullBeauty’s motion, allowing certain claims to proceed and dismissing others with leave to amend.
Issues
| Issue | Plaintiff’s Argument | Defendant’s Argument | Held |
|---|---|---|---|
| Deceptive Pricing under UCL, FAL, CLRA | FullBeauty’s pricing misleads consumers about former and market prices | No specific allegations items were never sold at strikethrough prices; banners have undefined asterisks | Broomes plausibly alleged misleading pricing; claims survive dismissal |
| FAL Section 17501 “Former Price” | Defendant’s strikethrough prices do not reflect recent market price | Insufficient specificity on prior 3 months’ item pricing | Broomes’s allegations of a perpetual scheme are sufficient |
| Fraud & Negligent Misrepresentation | Strikethrough pricing constitutes actionable misrepresentation | No additional, specific arguments unique from above | Claims survive for same reasons as UCL/FAL/CLRA |
| Equitable Jurisdiction (Restitution/Injunctive Relief) | Legal remedies inadequate for ongoing and past harm | No showing legal remedies are inadequate for restitution | Dismissed restitutionary claims for lack of jurisdiction; injunctive relief claims may proceed |
Key Cases Cited
- Williams v. Gerber Prod. Co., 552 F.3d 934 (9th Cir. 2008) (sets out 'reasonable consumer' test for UCL, FAL, CLRA deceptive advertising claims)
- People v. Superior Ct. (J.C. Penney Corp.), 34 Cal. App. 5th 376 (Cal. Ct. App. 2019) (discusses prevailing market price test in false advertising context)