954 F.3d 492
2d Cir.2020Background
- Plaintiffs (one New York buyer, four out-of-state buyers) purchased Dunkin' "Angus Steak" sandwich/wrap products after TV ads and alleged they paid a premium expecting an "intact" piece of steak.
- The products actually contained ground beef patties with additives; ads used the words "Angus" and "steak" and showed images of a beef patty.
- Plaintiffs sued asserting Magnuson‑Moss and state consumer-protection claims, including New York GBL §§ 349 and 350; the SAC alleged deceptive labeling/advertising.
- The district court dismissed: out-of-state plaintiffs for lack of personal jurisdiction; New York plaintiff Chen's GBL claims on the merits under Rule 12(b)(6).
- On appeal plaintiffs argued (1) registration under N.Y. Bus. Corp. Law § 1301(a) consents to general jurisdiction, or alternatively Dunkin's New York contacts suffice for general jurisdiction, and (2) Chen adequately pleaded deceptive advertising under GBL §§ 349/350.
- The Second Circuit affirmed: registration does not constitute consent to general jurisdiction post‑Daimler; Dunkin.'s contacts were insufficient for general jurisdiction; Chen's GBL claims failed because the ads and product labeling would not mislead a reasonable consumer.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Does registration under BCL §1301(a) constitute consent to general jurisdiction in NY? | Registration/designation of agent should be treated as consent to general jurisdiction. | Registration alone does not waive due-process limits post-Daimler; statutory text does not impose consent. | No — registration alone does not constitute consent to general jurisdiction. |
| Can Dunkin' be subject to general jurisdiction in NY based on contacts? | Dunkin' has numerous NY franchises and centralized control over labeling/ads; those contacts suffice. | Contacts are not "continuous and systematic" enough to render Dunkin' "at home" in NY (not incorporated/PPB there). | No — plaintiffs waived alternative argument below and, on the merits, contacts were insufficient under Daimler. |
| Do the ads/labels violate GBL §§ 349/350 (reasonable‑consumer standard)? | Use of "Angus" and "steak" in ads and labeling misled consumers into expecting an intact unadulterated steak. | Ads display the patty and products contain Angus beef; "steak" can reasonably refer to ground/served beef and disclosures defeat a deception claim. | No — as a matter of law the ads and labeling would not mislead a reasonable consumer; dismissal affirmed. |
Key Cases Cited
- Daimler AG v. Bauman, 571 U.S. 117 (2014) (general jurisdiction requires affiliations rendering defendant "essentially at home")
- Int'l Shoe Co. v. State of Wash., 326 U.S. 310 (1945) (established "minimum contacts" due process framework)
- Brown v. Lockheed Martin Corp., 814 F.3d 619 (2d Cir. 2016) (discussed consent-by-registration and Daimler implications)
- Fink v. Time Warner Cable, 714 F.3d 739 (2d Cir. 2013) (reasonable‑consumer standard for GBL § 349/350 claims)
- Maurizio v. Goldsmith, 230 F.3d 518 (2d Cir. 2000) (elements of a § 349 claim)
- Ashcroft v. Iqbal, 556 U.S. 662 (2009) (plausibility standard for Rule 12(b)(6) dismissal)
