951 F.3d 1263
10th Cir.2020Background
- Plaintiff Steve Strauss owned Classic Tree Care and paid Angie’s List for advertising and referral services from 2005–2016; he alleges Angie’s List ranks businesses based on advertising spend rather than unedited consumer reviews.
- Strauss paid roughly $200,000 to Angie’s List and claims, beginning in 2013, his business was excluded or buried in search results despite good reviews.
- In 2017 Strauss sued Angie’s List for Lanham Act false advertising and Kansas Consumer Protection Act claims; the district court dismissed most claims as time‑barred, leaving only claims based on three 2016 website statements.
- The 2016 Website Statements alleged: Classic had no consumer ratings/reviews, had not met Angie’s List’s criteria for inclusion, and had no local offers.
- The district court dismissed the remaining Lanham Act claims for failure to plausibly plead the statements were made in connection with “commercial advertising or promotion” under the Tenth Circuit’s Proctor & Gamble test; Strauss appealed, arguing Lexmark altered that test.
- The Tenth Circuit affirmed, holding Proctor & Gamble remains controlling and Strauss did not meaningfully challenge the district court’s application of that test to the 2016 statements.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the 2016 Website Statements qualify as "commercial advertising or promotion" under the Lanham Act | Strauss contends the statements induced consumers to buy Angie’s List services and/or its ranking scheme is false/misleading | Angie’s List argued the statements were not commercial advertising/promotional statements under Proctor & Gamble and the district court properly dismissed them | Affirmed dismissal: Strauss failed to plausibly plead the required connection to commercial advertising under controlling precedent; he did not challenge the district court’s application to the 2016 statements |
| Whether Lexmark abrogated the Proctor & Gamble four‑part test (esp. competition and purpose prongs) | Strauss (and cited authorities) argue Lexmark eliminated the competition requirement and the need to show the statement was intended to influence consumers to buy defendant’s goods/services | Angie’s List and the panel argue Lexmark did not address what constitutes commercial advertising or promotion and thus did not supplant Proctor & Gamble | Court held Lexmark did not abrogate Proctor & Gamble; Tenth Circuit remains bound to apply Proctor & Gamble to this issue |
Key Cases Cited
- Proctor & Gamble Co. v. Haugen, 222 F.3d 1262 (10th Cir. 2000) (adopted four‑part test for “commercial advertising or promotion” under § 1125(a)(1)(B))
- Lexmark Int’l, Inc. v. Static Control Components, Inc., 572 U.S. 118 (2014) (addressed statutory standing under the Lanham Act; declined to decide whether communications constituted commercial advertising)
- Sally Beauty Co. v. Beautyco, Inc., 304 F.3d 964 (10th Cir. 2002) (elements of a Lanham Act false advertising claim summarized)
- Twombly v. Bell Atlantic Corp., 550 U.S. 544 (2007) (pleading standard: plausibility requirement)
- Ashcroft v. Iqbal, 556 U.S. 662 (2009) (application of plausibility standard to complaints)
- In re Smith, 10 F.3d 723 (10th Cir. 1993) (panel precedent binds later panels absent en banc or Supreme Court decision)
