3:24-cv-00806
N.D. Cal.Mar 28, 2025Background
- Plaintiffs filed a class action against Procter & Gamble (P&G) alleging that labels on Pantene and Herbal Essences shampoos and conditioners mislead consumers regarding the percentage of "natural origin" or "naturally derived" ingredients in those products.
- The challenged labels included prominent front-label percentage claims (e.g., "90% Natural Origin") with explanatory definitions on the back, detailing P&G’s criteria for what constitutes “natural origin” or "naturally derived."
- Plaintiffs claimed they believed the front-label claims meant that the stated percentage of total ingredients (by number or across other reasonable measures) were natural, and that this was false or misleading.
- Plaintiffs did not review or allege reliance on the back-label explanatory statements, and had not performed product testing before the lawsuit.
- Plaintiffs alleged violations of the Consumers Legal Remedies Act, Unfair Competition Law, False Advertising Law, common law fraud/deceit/misrepresentation, and negligent misrepresentation, seeking to represent a California purchaser class.
- P&G moved to dismiss under Rule 12(b)(6) for failure to state a claim, and for lack of standing; the court granted the motion on the pleadings.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Judicial Estoppel | P&G took inconsistent positions about synthetic/natural origin ingredients in prior litigation | No factual concession in prior case; definitions differ and not inconsistent | No estoppel; arguments not clearly inconsistent |
| Reasonable Consumer Test | Labels are misleading—consumers think % natural origin means % of ingredients are natural | Labels are defined on the back; reasonable consumers are not misled with an explanation | Not misleading as a matter of law; front label ambiguity resolved by back label |
| Omission Liability | P&G omitted material details about ingredient calculations | No duty to disclose, and no actionable omission | No duty to disclose; omission theory fails |
| Negligent Misrepresentation/Economic Loss Rule | Negligent misrepresentation supports damages for economic loss | Claims for pure economic loss are barred in tort | Dismissed under economic loss rule |
| Fraud | P&G knowingly made false statements about label meaning using ISO standard | No knowing misrepresentation; standard used does not show fraud | Dismissed; no knowing falsity alleged |
Key Cases Cited
- Ashcroft v. Iqbal, 556 U.S. 662 (pleading standard for plausible claims)
- Bell Atl. Corp. v. Twombly, 550 U.S. 544 (pleading facial plausibility)
- Williams v. Gerber Prods. Co., 552 F.3d 934 (reasonable consumer test for label deception)
- Hamilton v. State Farm Fire & Cas. Co., 270 F.3d 778 (judicial estoppel standard)
- Lazar v. Superior Ct., 12 Cal. 4th 631 (elements of fraud under California law)
